|| Author: Duncan Riley|

Hire Purchase And Credit Sale Agreements

I see the Parliamentary Secretary in the Department of Housing and Local Government, who often talks about the need to build private homes and create a democracy with property. If we have to limit credit, why is the government trying to promote much of the rental purchase in the work of mortgage companies? It is absurd for the government to say, on the one hand, that we want less rental buying and, on the other hand, that they are urging local authorities to issue more private building permits, almost all of which are used by people who borrow from mortgage companies. The rental purchase is an agreement to purchase expensive consumer goods, under which the buyer pays a first acomptery and pays the balance, plus interest, in instalments. The notion of rental purchase is often used in the UK and is more often known in the US as a instalment payment plan. However, there may be a difference between the two: for some payment plans, the buyer obtains the ownership rights as soon as the contract with the seller is signed. In the case of lease purchase agreements, ownership of the goods is officially transferred to the buyer only after payment. On the contrary, I ask gentlemen, as long as they feel that the argument they are making makes sense, to remember that this is at least one of the three provisions put forward by the government as part of its policy of restricting credit. I think we all agree that some sort of credit restriction must now take place. We all know that there was too much money to hunt too few goods.

[HONOURABLE MEMBERS: “Absurdities.”] I`m happy, hon.

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