asked the Minister for Industry and Commerce when it is intended to make an order requiring all credit agreements advertised and all contracts to be signed to state prominently a true annualised rate of an all-in charge and how this will be enforced.
Written Answers. - Credit Agreements.
37.
Limerick East): A draft order is being prepared under the Consumer Information Act, 1978, which will require any advertisements or notices that make reference to the cost of credit to show the true cost of that credit by means of an annual percentage rate of charge (APR). The APR is the total cost of the credit expressed as an annual percentage of the amount of credit granted. The order will standardise the method of calculating the cost, taking account of the frequency of payments made plus the interest and other charges payable.
The draft order is at present being finalised for presentation to both Houses of the Oireachtas for positive approval in the next parliamentary session. The order will be enforced by the Director of Consumer Affairs.
A draft EC Directive on Consumer Credit contains provisions on the inclusion of information on APR in all credit agreements and contracts. The final form of these provisions has not yet been agreed, but discussions on the matter are at an advanced stage. I propose to await adoption of the Community Directive before promoting national legislation on this aspect, so that that legislation would not be out of line with the Directive as finally adopted.