asked the Minister for Industry and Commerce the plans, if any, he has to provide better protection for consumers from the activities of moneylenders.
Ceisteanna — Questions Oral Answers. - Consumer Protection.
12.
I made an order in December 1987, entitled the Consumer Information (Consumer Credit) Order, 1987. This order, which came into effect on 10 March, 1988, requires that advertisements, which make references to the availability and cost of credit, and any publicity material about credit on display in premises where credit is available, must show the true cost of that credit by indicating the annual percentage rate of charge (APR).
I will be promoting in the next year or so legislation to implement the EC Directive on Consumer Credit. Both of these measures will provide consumers with better protection in the area of credit, including that provided by moneylenders.
Would the Minister indicate whether the legislation he says he will promote in a year or so will include a tightening up of the law in relation to moneylending as now carried on by various individuals and companies? Could he perhaps give us a clear indication of what he means by a year or so? Does he not regard the matter of moneylending as a serious and urgent matter to be dealt with?
I shall see whether I can expedite the matter. I shall have a close look at it for the Deputy. The legislation is to give effect to the Consumer Credit Directive of the European Community. The main provisions of that directive are — first, an obligation to disclose all relevant information to the consumer, in particular as regards the true cost of credit; secondly, rules relating to early termination of contracts and repossession of goods; thirdly, joint liability of creditor and the supplier of goods and services acquired under a credit agreement under certain defined circumstances and finally, there will be provisions which relate to supervision and control of persons granting credit. The legislation is being prepared at the moment. I shall see if I can expedite it but am not aware of the Dáil schedule in these matters.,
Proinsias de Rossa
With regard specifically to moneylending, to which my question related, has the Minister any proposals with regard to controlling moneylenders or improving the legislation which controls them and the rates they charge? Is the Minister aware of the device being used by some moneylenders whereby they simply offer credit and make a service charge for the provision of this credit which runs at something like 50 per cent per annum?
I know the Minister for Social Welfare is active in this area. I agree with the Deputy that this is a major social evil, one which the Government are determined to stamp out. The new legislation will control persons granting credit and I interpret it as including moneylenders. If that is not the situation I will communicate with the Deputy. In a broad way I am aware of the device being used to get around the credit problem. I will certainly make sure that the Minister for Justice is fully aware, because the moneylenders Acts come under the ambit of the Minister for Justice. I will ask the Minister to consider what he can do to bring this practice to an end.
May I take it from the Minister's reply, when he referred to this legislation as relating to moneylenders, that his Department are now taking over responsibility from the Department of Justice for the moneylenders Acts? If that is not the case, will the Minister agree that one of the main reasons this scandal of moneylending continues is that there is a division of responsibility with regard to consumer credit and the Department of Justice have so many other legislative priorities that they are not dealing with this matter as expeditiously as they should? Would the Minister agree, if it is not already the case, to get a Government decision to allocate entire responsibility to his Department for the moneylenders Acts, so that all aspects can be dealt with in the legislation which he has just promised, rather than just the bits that emanate from the EC directive?
The EC Directive is a consumer measure and will, therefore, be dealt with by the Department of Industry and Commerce. The Minister for Justice deals with the moneylenders Acts as such——
They are consumer acts as well.
We are not convinced at this stage that our Department should take over the responsibility for the moneylending Acts. I am having that looked at very closely as there may be a case for it.
That is the key to the whole problem.
An end has come to ordinary Question Time. We will now move on to Priority Question No. 38.