§ Lord Rippon of Hexhamasked Her Majesty's Government:
Whether there is a level of annual percentage interest rate which they would regard as so excessive as to warrant being made a criminal offence; and, if so, what is that level.
§ Lord Young of GraffhamThe Consumer Credit Act 1974 gives protection against extortionate credit agreements by providing for a court to reopen a credit bargain which it considers extortionate. The Act requires the court, in coming to its decision, to have regard to the interest rate charged and to other relevant factors. It is the Government's view that it would not be helpful to specify a maximum interest rate, since no particular level of interest would be 1237WA appropriate to the wider range of credit transactions regulated by the Act. The department proposes, however, as part of its review of the Consumer Credit Act to strengthen the current provisions to allow a court to reopen a credit agreement of its own motion rather than, as at present, solely at the instance of a debtor or surety.