HC Deb 02 March 1989 vol 148 cc308-9W
Mr. Tim Smith

To ask the Chancellor of the Duchy of Lancaster what evidence he has on the level of understanding among consumers of the concept of a secured loan.

Mr. Maude

The results of a survey published by the Office of Fair Trading last autumn showed widespread lack of understanding of the concept of a secured loan; 44 per cent. of respondents claimed to have no idea of the difference between a secured loan sand an unsecured loan and only 11 per cent. understood unprompted that a secured loan could result in the loss of the borrower's home.

Mr. Tim Smith

To ask the Chancellor of the Duchy of Lancaster what proposals he has to make regulations under the Consumer Credit Act 1974 requiring advertisements for secured loans to carry a health warning.

Mr. Maude

As part of the review of the Consumer Credit (Advertisement) Regulations, it is proposed that advertisements for secured loans should include a warning of the risk of repossession in the event of default.