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Companies (Advertising)

Volume 129: debated on Wednesday 9 March 1988

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45.

To ask the Chancellor of the Duchy of Lancaster what plans there are to seek to protect the consumer from misleading advertising by loan companies.

It is already an offence under section 46 of the Consumer Credit Act 1974 to publish an advertisement which is false or misleading in a material respect. In addition the Consumer Credit (Advertisements) Regulations regulate the form and content of advertisements for credit in some detail and ensure that consumers are given full and accurate information on relevant matters, including the total cost of credit. I believe, nevertheless, that there is scope for improving the protection provided by the current regulations and my Department will shortly circulate revised draft regulations which simplify and clarify the existing provisions and contain additional safeguards for borrowers, particularly in the area of secured lending.