§ Mr. Eggarasked the Secretary of State for Trade and Industry whether he has reviewed the proposals to increase the monetary limits in the Consumer Credit Act 1974; and if he will make a statement.
§ Mr. Alexander FletcherI have reviewed the proposals which were announced on 20 July 1982 and 15 April 1983. I now propose to increase from £30 to £100 the lower limit under section 75 of the Act, which provides that joint and several liability of supplier and creditor does not attach to items unless their cash price is above that limit. This will reflect more closely the movement in money values since the £30 limit was set. It will also go some way towards removing from the ambit of section 75 those transactions where the credit card is a convenient substitute for cash and which the provision was not intended to cover.
I propose also that this new limit, along with the previously announced increases in the limits for "small agreements" under section 17(1) and fees chargeable under sections 155(1) and 158(1) of the Act, will come into operation on 1 January 1984. The other changes in monetary limits and their operative date remain as previously announced.
I have made an order to bring into operation those limits which do not require affirmative resolution. I shall lay before Parliament very shortly a draft order to implement those increases which require an affirmative resolution of each House of Parliament.
I shall take an early opportunity to lay regulations amending from £30 to £50 the limits in the Advertisements and Quotations Regulations. These changes will also take effect on 1 January 1984.