Skip to main content

Credit Purchasing (Purpose Loans)

Volume 893: debated on Monday 16 June 1975

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Secretary of State for Prices and Consumer Protection (1) whether she will propose legislation to give the same protection in respect of "purpose loans" as is given in the case of credit sale agreements in order to prevent this method of avoiding existing legislation, and in particular in respect of second hand car sales;(2) whether she will inquire into the practice of using "purpose loans" for the purchase of second-hand motor vehicles so as to avoid the protection offered in respect of credit sale agreements.

The Consumer Credit Act 1974, for which regulations are now being drawn up, covers all the abuses that have come to our attention arising from such loans. In drawing up these regulations I would be willing to look at any particular point that my hon. Friend cares to bring to my attention.