§ Mr. Ieuan Wyn JonesTo ask the Chancellor of the Duchy of Lancaster what further steps his Department intends to take to protect consumers from finance companies who provide loans at exorbitant interest rates.
§ Mr. MaudeI am proposing to amend the Consumer Credit Act 1974 to allow a court to reopen an extortionate credit agreement of its own motion. This will provide additional protection for the customers of moneylenders who are unaware of their right to apply to the court for this purpose and are not represented during any legal proceedings for debt by a lender. I am also proposing to provide more effective protection against credit businesses which operate in an unacceptable manner. Under proposals circulated last week by my Department businesses involved in lending or hiring will need to be licensed by the Office of Fair Trading every three years, instead of every 15 years as at present. I propose also that the Office of Fair Trading should have additional powers to enable them to take swift and effective action against unacceptable business practices, including the power to prohibit a business from trading with immediate effect where necessary.