Dinny McGinley
Question:193 Mr. McGinley asked the Minister for Finance his plans for the inclusion of credit unions in the Consumer Credit Act 1995. [17420/03]
Written Answers. - Credit Unions.
Section 3(2) of the Consumer Credit Act 1995 excludes credit unions from the scope of the Act. This means, inter alia, that they are not bound by the provisions of the Act that relate to advertising, including the obligation to quote an annual percentage rate or APR, or to credit agreements. These provisions derive mainly from the 1987 consumer credit directive.
Although the Consumer Credit Act 1995 does not apply to credit unions, the fact that their activities and rules have to be in accordance with the Credit Union Act 1997 provides a substantial measure of consumer protection for their customers. The European Commission is of the opinion that Ireland, by excluding credit unions from the scope of the 1995 Act, failed to transpose the directive correctly. While I do not necessarily accept all of the Commission's conclusions in this regard, I am examining the matter. I am considering whether to propose the repeal of the section 3(2) exclusion in order to bring credit unions within the full scope of the Act. However, my preference is for an approach which would recognise and be supportive of the uniqueness of credit unions, while addressing effectively the appropriate regulatory and consumer protection requirements that arise.
I have also asked my officials to explore alternative possibilities, such as using or expanding some of the existing arrangements under the Credit Union Act 1997 or the making of appropriate regulations. The development and implementation of suitable measures based on this approach would require the co-operation and assistance of the credit union movement and the Irish Financial Services Regulatory Authority.