§ Mr. Gwilym Robertsasked the Secretary of State for Prices and Consumer Protection if he will seek to ensure that credit card users are always made aware of the annual rate of interest and not the monthly rate, which may be misleading; if he will seek to set a ceiling to the annual rates of interest chargeable on loans; and if he will make a statement.
§ Mr. John Fraser:Regulations under the Consumer Credit Act 1974 which I hope to make early next year will require consumer credit advertisements to show the annual percentage rate of charge for credit. Later regulations will impose this requirement in relation to agreements. I have no power to set a ceiling to interest rates and take the view that, since the reasonableness of the rate charged in a 705W particular case will depend on many factors, such a ceiling would be inappropriate.