Vol. 339 No. 9
asked the Minister for Trade, Commerce and Tourism if he is aware that credit terms which are likely to mislead the public are being advertised in connection with the purchase of goods; and if he is prepared to introduce credit legislation that would provide for a single standard method of presenting the annual percentage interest rate being charged on all forms of loans.
30.
asked the Minister for Trade, Commerce and Tourism if files on creditworthiness which are kept by credit finance companies and others involved in the lending business, can be freely inspected by the persons named in such files; if he considers that there is a need for legislative reform in this area to protect the rights of consumers; and if he will make a statement on the matter.
31.
asked the Minister for Trade, Commerce and Tourism if there are any rules of practice being operated at present which apply to hire-purchase agreements in order to avoid exorbitant charging; and, if so, if he will consider introducing reforms in this code.
I propose to take Questions Nos. 29, 30 and 31 together.
These questions impinge in varying degrees on what could be described as the area of consumer credit. A number of international institutions including the EEC have been considering different aspects for several years past. Consumer credit features in the EEC first and second consumer programmes and a draft directive has been under discussion for some time. However, it is not possible at this stage to say when work on this will be finally completed or indeed what shape the eventual directive is likely to take.
It is desirable that credit arrangements, whether in the area of HP, credit sales or cash loans from financial institutions, should put the customer in a position where he can shop around intelligently for the best credit bargain and make an informed decision.
I also accept that there should be certain minimum safeguards and protections built into any regime of consumer credit.
In relation to the specific matters raised in the questions I do accept the desirability of reviewing them to see to what extent they should be subject to control; it may be possible, but this remains to be established, to deal with them to some extent by using existing legislation.
In this examination we will, of course, also have to take cognisance of developments on the European front.
Will the Minister consider the specific case of misleading interest rates, currently being advertised, to see if it would be possible to include them within existing legislation for control?
Yes, I consider that a most appropriate matter to be taken into consideration in reviewing this area.
Will the Minister agree that where legislative reform is necessary and desirable we do not necessarily have to wait until directives are issued by the EEC for the purpose? The point referred to by Deputy Bruton is a valid one because people are genuinely misled by rates of interest being suggested which are not altogether in accordance with the facts. For example, suggested rates of interest may be 6 per cent while in reality they might be as high as 30 or 40 per cent. That requires urgent attention and we should not wait for the EEC to move.
I did not suggest, as the Deputy seems to think, that it is necessary to wait for the EEC, but I did say that it was necessary to take into consideration the shape and direction of EEC directives, or ones to be issued. The matter raised by Deputy Bruton will have to be taken seriously into consideration.
