§ Mr. JannerTo ask the Secretary of State for Trade and Industry whether he will introduce legislation to place a ceiling on annual percentage rate levels legally chargeable by licensed money lenders.
§ Mr. LeighIt would not be helpful to impose a maximum interest rate, since no single rate could be appropriate to the wide range of credit transactions undertaken by licensed money-lenders. However, the Government proposes, as soon as Parliamentary time becomes available, to strengthen the provisions in the Consumer Credit Act 1974 under which courts have the power to reopen credit bargains which they consider extortionate. It is proposed to allow courts to reopen credit bargains on their own initiative rather than, as at present, solely at the request of the debtor or surety.