§ Mr. FrenchTo ask the Secretary of State for Trade and Industry what representations he has received alleging unfair terms in maintenance contracts for office and industrial equipment.
§ Mr. Redwood[holding answer 12 March 1991]: I have received a number of complaints about photocopier leasing agreements where the lessee felt that he had been misled as to the length of the agreement, the overall cost of the agreement, or in some cases, as to the nature of the agreement itself.
The code of practice of the Equipment Leasing Association requires members to "behave with integrity" and not to
misinterpret facts to a lessee concerning any aspect of a leasing transaction".This is the standard the Government would expect of the industry and is the only way for the industry to retain the confidence of its customers.However, potential lessees also have responsibilities. Anyone in business who signs a leasing agreement should make sure that he has fully understood the terms and the 24W overall cost. An agreement for instance, which looks like a bargain for the first 18 months may be substantially more expensive when looked at over the full term.
Companies should also make sure that such agreements can be signed only by someone of sufficient authority to ensure that the terms have been fully considered. This should be standard practice even where a document appears to be only an amendment to an earlier agreement.
If misrepresentation has occurred then there are remedies in law. In certain circumstances fraudulent misrepresentation may amount to a criminal offence. Whether any particular company has been guilty of misrepresentation would be a matter for the courts.
A licence under the Consumer Credit Act 1974 is required by any person or company wishing to carry on a consumer hire business. A company may have its licence suspended or revoked by the Director General of Fair Trading if he believes that the company is not fit to engage in the activities covered by the licence.
Anyone with information relevant to a person's suitability to hold such a licence should send it to the DGFT.
§ Mr. FrenchTo ask the Secretary of State for Trade and Industry (1) if he will ask the Director General of Fair Trading to prepare a report on the terms and conditions to be found in maintenance contracts for office and industrial equipment;
(2) if he will ask the Director General of Fair Trading to investigate the pricing and supply of parts and labour for the maintenance and repair of office and industrial machinery.
§ Mr. Redwood[holding answer 12 March 1991]: I am aware of no justification for doing so.