Carol Beaumont, in Committee, to move the following amendments:
New clause 22B
After clause 22A (page 41, after line 21), insert:
22B Section 39 amended (Limit on interest charges)
(1) In the heading to section 39, after
“Limit on interest charges”, insert
“and interest rate”.
(2) After section 39(2), insert:
After clause 65(2A) (page 101, after line 32), insert:
New Part 3
After clause 108 (page 123, after line 25), insert:
Amendment to Secondhand Dealers and Pawnbrokers Act 2004
109 Principal Act
This Part amends the Secondhand Dealers and Pawnbrokers Act 2004 (the principal Act).
110 Section 57 amended (Redemption price)
This Supplementary Order Paper amends the Credit Contracts and Financial Services Law Reform Bill by prescribing a maximum rate of interest to be set by regulation that can vary according to the amount and term of the loan.
Interest rate restrictions will make it essential that the prohibition on charging of fees by pawnbrokers under the Secondhand Dealers and Pawnbrokers Act 2004 is repealed. If this is not done, then licensed pawnbrokers would not be able to provide services within the capped rate of interest.