asked the Minister for Finance whether he will consider taking steps to prevent banks from issuing credit cards to customers who have not requested them, in view of the fact that their issuance will not be helpful to measures aimed at curbing or containing inflation.
Ceisteanna—Questions. Oral Answers. - Bank Credit Cards.
33.
I do not propose to take action on the lines suggested by the Deputy. There is no evidence to suggest that the use of credit cards is contributing to inflation.
Does the Minister not think it inadvisable that unsolicited credit cards should be issued? Is this not a dangerous situation to create?
My concern as Minister for Finance relates to the total amount of credit available rather than to the methods by which it is made available. That is as a general principle. The fact is that the scheme to which the Deputy referred comes under the general credit control of the Central Bank. It is just one form of credit as against another.
Where cards are not solicited does the Minister not agree that it is not a good practice?
That is a matter outside my function as Minister for Finance.
Does the Minister not think it is an inducement to spend money unnecessarily?
There are many inducements to people to spend money unnecessarily.
Have the National Prices Commission any say in these credit cards or were they applied to?
I do not think this is a matter that would come before the National Prices Commission.
Would the Minister agree that 18 per cent is a pretty high rate of interest?
It is not unusual in cases of credit of this kind. It is quite usual in hire purchase. These rates of interest are quite common. People may not realise that, but it is a fact.