§ Mr. McCrindleasked the Secretary of State for Prices and Consumer Protection if he will ask the Director General of Fair Trading to investigate the practice of applying a penalty of some months' 516W interest when a mortgage is redeemed before its terminal date.
§ Mr. John FraserNo. The Registrar of Friendly Societies has already made representations to the Building Societies Association on this matter, and the nine largest societies, as well as a number of others, have discontinued the practice. If the hon. Member has any specific cause for complaint, he should contact the Registrar. Where regulated consumer cerdit agreements are concerned—these are transactions involving credit of not more than £5,000 provided to an individual—it is my intention in due course to introduce regulations under Section 95 of the Consumer Credit Act 1974 to provide for a rebate of interest and other charges when a loan is repaid earlier than provided for in the agreement. Many second mortgage transactions will come within this category.