Vol. 424 No. 5
68 Mr. Callely asked the Minister for Justice the criteria necessary to become a licensed moneylender; the interest rate charged by moneylenders compared with that charged by credit unions or co-ops; the controls which govern the interest rate charged by moneylenders; and if he will make a statement on the matter.
The Moneylenders Act, 1933, provides that the Revenue Commissioners may issue a moneylender's licence to a person who has been granted a certificate by the Court under the provisions of section 6 of the Act.
There are no provisions in the Moneylenders Acts, specifying the rates of interest which moneylenders may charge. However, the figure of 39 per cent interest is mentioned in the 1933 Act. in the context of a provision which allows a court, where proceedings are brought by a moneylender for the recovery of money lent, to re-open the transaction and give equitable relief to the borrower if the transaction is harsh and unconscionable. The court must conclusively assume that it is such a transaction if the interest exceeds 39 per cent simple interest, but can give relief even where the interest is less.
My Department do not have any responsibility for the operation of credit unions or co-operatives. Accordingly, I have no knowledge of the interest rates chargeable by them.
