asked the Minister for Industry and Commerce the average interest rates charged by HP companies; and if he will introduce legislation to fix the maximum interest rate which may be charged.
Written Answers. - HP Interest Rates.
125.
The nominal interest rates charged by the larger finance houses and by the licensed banks was 10½ per cent-11½ per cent in the four quarters up to March, 1973. Because the amount lent is reducing over the repayment period the actual rate of interest is almost twice the nominal rate. Information about the rates charged by the smaller companies is not available but as the rates are competitive they are unlikely to deviate very much from the market rates.
I have power to control the rates of interest charged for hire purchase but these charges cannot be considered in isolation from the interest rates for other types of consumer credit and I am not yet in a position to say whether it would be desirable to control them.