Vol. 196 No. 3
asked the Minister for Industry and Commerce what legislation and/or regulations at present exist to ensure that members of the public are not persuaded by unscrupulous hire-purchase companies to undertake purchases and to get into debt which is beyond their means to pay; and by what means he ensures that any such legislation or regulations are complied with by the hire-purchase companies.
23.
asked the Minister for Industry and Commerce whether he is aware that hire-purchase companies make a practice of sending out circulars to customers who are already in considerable debt to them, describing what are termed privileged customer schemes, etc., and enticing the customers to enter into further debt by making further purchases without paying any extra deposit; whether it is permissible to offer goods for sale in this way on which no deposit is paid; and whether he will take steps to investigate and control this type of sale.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 22 and 23 together.
Hire-Purchase activities are governed by the Hire-Purchase Act, 1946, and the Hire-Purchase (Amendment) Act, 1960. I have power under the amending Act to make Orders regulating such matters as advertising, minimum deposits, and periods of repayment. An Order relating to the advertising of goods for sale on hire-purchase terms, which came into effect on 1st April this year, ensures that intending purchasers are fully informed beforehand of the extent of their commitments. The necessary steps are being taken to ensure compliance with this Order and I should like to bring it to the attention of traders concerned that those who fail to comply with it will leave themselves open to prosecution.
At present there is no obligation on traders to require a deposit in hire-purchase transactions. As I explained during the debate on the Act of 1960, it is the intention that my power to make Orders regulating minimum deposits and periods of repayment should be exercised only to safeguard the balance of payments and the level of savings. It is for that reason that the Act provides that an Order dealing with these matters can be made only after consultation with the Minister for Finance. Circumstances have not arisen in which it would be necessary to make such an Order.
