§ Mr. PikeTo ask the Secretary of State for Trade and Industry what representations he has received from the home shopping industry in relation to consumer credit agreements; and if he will make a statement. [65306]
§ Dr. HowellsI have received a number of representations from the home shopping industry, both independently and in response to the question posed in a consultation paper the Department issued last year on whether the legislation should be changed to make unsigned consumer credit agreements for mail order sales enforceable.
I have carefully considered the evidence which all consultees representing many interests put to the Department. I have decided not to make unsigned agreements enforceable since I have been given clear evidence that some consumers are suffering detriment from the practices adopted by some mail order firms. In addition to signing nothing, some consumers are not receiving copies of mail order credit agreements. This leads to confusion about the debt owed and the terms and conditions on which the credit has been provided, which can also reflect unfairly on credit worthiness. I am concerned that some mail order companies may not be satisfying the requirements of the European Consumer Credit Directive and the Distance Selling Directive on giving written information to consumers.