The Office of Fair Trading has had many complaints about problems with bills of sale.
Consumer Minister Kevin Brennan says: "These bills of sale are archaic and allow vulnerable people's goods to be seized without a court order.
In addition, no exemption from paying transfer fees shall apply for any bills of sale
bearing a date preceding that on which the law came into force.
Instead of banning the practice the committee is urging the Government to update the laws with bills of sale
written in plain English, to have assets registered with credit authorities so buyers know if debt is secured against them and to require a court order and notice before the asset is seized.
Consumer minister Kevin Brennan said: "These bills of sale
are archaic and allow vulnerable people's goods to be seized without a court order.
Ministers favour an outright ban on the use of bills of sale
for lending to consumers but other measures being considered include the introduction of a voluntary code of practice, and reform of legislation governing the loans.