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Hire Purchase And Credit Sale Agreements

Volume 640: debated on Tuesday 16 May 1961

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asked the President of the Board of Trade if he is aware that a deposit of 20 per cent. of the total purchase price has to be paid when buying a television set on hire purchase, but when renting the same set a customer need only pay an amount equal to 13 weeks of the hire-purchase charge, or approximately 10 per cent. of the purchase price; and if he will review these charges and either decrease the hire-purchase deposit to 10 per cent. or increase the rental deposit to 26 weeks.

I am aware of the terms of the Hire-Purchase and Credit Sale Agreements (Control) Order. I am satisfied that the difference between the amount of rental payable in advance and the deposit payable in respect of hire purchase reflects fairly the difference between hiring and buying by instalments.