Vol. 202 No. 1
asked the Minister for Finance whether there is any form of State registration for private loan and hire purchase finance companies, as apart from banks; and whether there is any State control on the amount of interest chargeable on private and hire purchase loans made by such companies, either to individuals or to industrial or commercial undertakings.
26.
asked the Minister for Finance the number of private loan and hire-purchase finance companies at present operating in the State; and the number of such companies which are subsidiary companies of banks, or are closely financially connected with banks, whether by having the same directors or in other ways.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 25 and 26 together.
A company carrying on the business of a moneylender or holding itself out as a moneylender is required to take out annually a licence under the Moneylenders Acts in respect of each address in which it carries on business. 137 moneylenders licences are at present in operation.
There is no form of State registration for hire-purchase finance companies as such but I understand that 44 such companies are operating here and that the capital of five of them is partly or wholly held by Irish banks.
There is at present no State restriction on the amount of interest which may be charged on private or hire-purchase loans. However, if a borrower against whom proceedings are being taken for the recovery of a loan can show that the rate of interest is excessive, the court may allow relief under the Moneylenders Acts. If the interest charged exceeds 39 per cent per annum simple interest, the court is obliged to hold that it is excessive and to allow relief accordingly.
Is the Parliamentary Secretary aware that the lending rates of some of these companies exceed 30 per cent and does he not consider that figure grossly exorbitant?
That matter is covered by legislation.
Am I to assume from that reply that the State stands over some of these hire-purchase companies who charge more than 30 per cent to their unfortunate clients?
The Deputy has the wrong end of the stick. The State lays down the maximum and the onus of raising this issue rests on the borrower in proceeding for the recovery of the overcharge.
Will the Parliamentary Secretary state the maximum that is allowed?
I have already informed the Deputy of that.
Does the Parliamentary Secretary not agree that several of these companies have strangleholds on a large number of our citizens throughout the State and that we seldom, if ever, read reports of these cases in our newspapers?
The Deputy is confusing hire-purchase companies with moneylenders.
They are all the same.
They are not.
For the fellow who has to approach them. I will be raising this matter again.
