CASH ORDERS

Opunake Times, 23 June 1939, Page 1

CASH ORDERS

ACTION BY NEW SOUTH WALES CONTROL OF MONEY-LENDING Strict control of cash order firms and definition of their business as money-landing will bo provided in a Bill shortly to be considered by the Nvw South Wales Cabinet. Proposals include limitation of the- interest to 'bo charged on cash orders and elimination of tertaiu profits now made in addition to the actual interest

charged. Inquiries made on behalf of the Government have shown that profits on some cash orders amount to as much as 50 per cent per annum. The practice of canvassing for cash orders will be made illegal by the new measure. The practice is growing and was the subject of a question in Parliament recently, when it was revealed that agents call at suburban homes and persuade women to take cash orders without the consent of their hus- : | bands.

Under the proposed Bill, cash order firms will be required to carry on business only in a registered office. Hawking of cash orders from door to door will be prohibited. Interest on teash orders is mostly charged on a flat-rate basis, resulting in a high rate when calculated on a per annum basis. To keep a check on these rates, it is proposed to empower a Court to review cash orders if requested, and to fix reasonable rates of interest.

Official investigations have shown that it is a common practice for stores supplying goods for cash, orders to jvive the issuer of tho order at least a month's credit before the order is redeemed, all to the benefit of the issuer. Another practice revealed by the inquiry is that stores give issuers of cash orders a discount on the purchase prive of goods. This discount, it is claimed, should properly go to the buyer of the cash order.

Clauses aimed at stopping these practices wil] be included in Mac new Bill, which will bo in the form of an amendment of the Moneylenders A\;t and will have tho effect of making cash order firms moneylenders in the eyes of the law.