Dáil Éireann debate -
Wednesday, 5 Jul 1995

Vol. 455 No. 5

Private Members' Business. - Consumer Credit Bill, 1994: From the Seanad.

The Dáil went into Committee to consider amendments from the Seanad.

Minister of State at the Department of Enterprise and Employment (Mr. Rabbitte)

I move that the Committee agree with the Seanad in amendment No. 1:

In page 10, between line 2 and 3, the following definition inserted:

"`agreement' means an agreement to which this Act applies;".

Section 2 contains definitions of the various terms used throughout the Bill. Arising from amendments adopted on Report Stage in this House the term "agreement" is used extensively throughout the Bill. It comprehends agreements for cash loans, credit sale, hire purchase, consumer hire, money lending and housing loans. On the advice of the Attorney General's office it is necessary to define agreements so that its usage will cover all the agreements to which the Bill applies.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 2:

In page 10, lines 3 to 7 deleted and the following substituted:

"`APR' means the annual percentage rate of charge, being the total cost of credit to the consumer, expressed as an annual percentage of the amount of credit granted and calculated in accordance with section 10;".

This amendment deals with the definition of APR. As I indicated on Second Stage, APR is a term which is increasingly in public usage. In short, APR is the true rate of interest. It means the total cost of credit to the consumer over the lifetime of the loan expressed as an annual percentage of the money borrowed. I have endeavoured to come up with a verbal definition of APR which will be readily intelligible to all consumers. I considered various formulations, particularly on Report Stage. Among the definitions I considered was the following: "APR is that effective rate of interest quoted as an annual rate which, expressed as a decimal and used to discount the repayments made by the borrower over the term of the loan, gives a total present value of such repayments equal to the amount of the loan advanced."

Another definition considered at that stage was "the true rate of interest is the rate of discount expressed in annual percentage terms that when applied to the total sum of repayments made on the loan over its lifetime equates that amount to the original value of the loan, taking account of the amounts, timing and frequency of the debiting instalments of amounts due for repayment and crediting of repayments made to the running account of the borrower".

These definitions give verbal expression to the mathematical formula which perhaps is only intelligible to economists, accountants and mathematicians. Deputy Ned O'Keeffe asked me to go back to the drawing board on the question of the definition. I assure him I have done precisely that and the definition proposed in this amendment is the most intelligible to consumers. I, therefore, propose the following definition: "APR means the annual percentage rate of charge being the total cost of credit to the consumer, expressed as an annual percentage of the amount of credit granted and calculated in accordance with section 10". This definition has the added advantage of being the definition specified in the European Union Consumer Credit Directive of 1990. One of the purposes of the Bill is to transpose that directive into national law.

Mr. E. Ryan

I welcome this amendment which will clear up the confusion about the amount of interest charged on loans. As the Minister said, the definition was understood only by mathematicians and economists and many people did not know the total cost of a loan. This definition will make it easier for people who do not have a background in banking or economics to work out the true cost of a loan. People did not realise that some of the loans advertised in the media had hidden costs and they found out about them only when making the final payment. I welcome this clarification.

Mr. T. Kitt

I compliment the Minister on his ingenuity and for responding to my colleague, Deputy O'Keeffe. Clearly, this Bill has benefited from the Seanad. As the Minister is aware my party was active in initiating much of this Bill. I welcome the fact that the Minister has endeavoured to respond and has taken account of what is happening at EU level. At the end of the day this is in the consumers' interest and we welcome the amendment.

Mr. Rabbitte

I concur with what both Deputies have said. We have taken some time to examine the mathematical formula that is attached. The task we were presented with was to give verbal expression to that formula, which is not a particularly easy thing to do. The point made by Deputy Eoin Ryan is particularly relevant in the context of a later amendment which will require financial institutions to advertise only in terms of APR. Even if some people do not understand APR they know they are comparing like with like. It represents progress.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 3:

In page 10, between lines 7 and 8, the following definition inserted:

" `authorised copy' in relation to a moneylender's licence, a mortgage intermediaries authorisation or a credit intermediaries authorisation, means a copy of the licence or authorisation for display purposes issued by the Director in such form as he may decide;".

The Bill requires moneylenders, credit and mortgage intermediaries to display in a prominent position in any premises where they engage in the business of being a moneylender, creditor or mortgage intermediary, a copy of their licence or authorisation. In order to avoid a photocopy being displayed, and the potential this has for abuse, I propose that the Director of Consumer Affairs shall issue a copy of the licence or authorisation specifically for this purpose.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 4:

In page 10, lines 8 and 9 deleted and the following substituted:

" `authorised officer' means—

(a) in relation to this Act, other than Part IX, a person appointed under section 7, or

(b) in relation to Part IX, a member of the Garda Síochána;".

This relates to the definition of "authorised officer". Apart from Part IX which concerns moneylending, authorised officers for the purposes of this legislation shall be appointed by the Minister or the Director of Consumer Affairs in accordance with section 7. However, in relation to the moneylending provisions in Part IX, only members of the Garda Síochána shall be authorised officers. Illegal moneylending often brings with it wanton violence and gross exploitation. It is only logical that in such circumstances the Garda will be the enforcement authority.

Question put and agreed to.

An Ceann Comhairle

We come to Seanad amendment No. 5. I observe that Seanad amendments Nos. 5 and 6 are consequential on amendment No. 19, and Dáil consequential amendments Nos. 7 to 11, inclusive, are consequential on Seanad amendment No. 5. I suggest, therefore, that we discuss Seanad amendments Nos. 5, 6 and 19 and Dáil consequential amendments Nos. 7 to 11, inclusive, together if that is satisfactory.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 5:

In page 10, lines 10 to 13 deleted and the following substituted:

" `borrower' means a consumer acting as a borrower;".

Arising from the insertion on Report Stage in this House of the provisions relating to credit sale, the term "buyer" was used for the first time. As in the case of "borrower", a "buyer" has been defined as a consumer acting as a buyer. In order to reflect the fact that the term "borrower" is used in Part IX relating to moneylending, "borrower" has now been defined in the same fashion i.e. "borrower" means consumer acting as a borrower.

In relation to Seanad amendment No. 19, the revised text of subsection (2) of section 2 for the first time refers to buyer and seller and lists the various parties to the agreement in correct alphabetical order. Dáil consequential amendment No. 7 is purely a textual amendment. As a result, the definition "collecting repayments" now means in respect of a moneylending agreement, the collection of repayments in respect of the agreement at a place other than a business premises of the moneylender. That may well refer to Seanad amendment No. 7 rather than Dáil consequential amendments.

Section 104 deals with the repayment book which a moneylender is required to provide in respect of each moneylending transaction. Section 105 stipulates the records to be maintained by a moneylender. Throughout Part IX of the Bill, which deals with moneylending, the previous references to consumer have been replaced by the term "borrower". In the interests of consistency, it is necessary to insert "borrower" in place of "consumer" in sections 104 and 105. Section 107 is concerned with moneylending agreements which include a collection charge. In the interests of consistency the term "consumers" in line 26, page 58, is being replaced by the word "borrowers".

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 6:

In page 10, between lines 15 and 16, the following definition inserted:

"`buyer' means a consumer acting as a buyer;".

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 7:

In page 10, line 23, "the" deleted where it firstly occurs and "a" substituted.

This is purely a textual amendment. As a result the definition "collecting repayments" now means, in respect of moneylending agreements, the collection of repayments in respect of the agreement at a place other than a business premises of the moneylender.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 8:

In page 10, line 29, "credit" deleted.

This amendment is consistent with other amendments which I tabled on Report Stage in the Dáil, entailing the deletion of the word "credit" from the definition of "credit agreement". "Agreement" will now be the term used in the case of credit, hire purchase and consumer hire transactions. It is a generic term covering all three kinds of agreement.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 9:

In page 10, between lines 23 and 24, the following definition inserted:

" `company' means—

(a) a company within the meaning of the Companies Acts, 1963 to 1990, or

(b) a body established under the laws of a state other than the State and corresponding to a body referred to in paragraph (a);".

What I am seeking to do here is to insert a definition of "company" into the Bill for the first time. The term which is used elsewhere in the Bill was not defined until Committee Stage in the Seanad. The insertion in the Seanad gives the standard legal definition of company.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 10:

In page 11, line 4, "account" deleted and "credit card account" substituted.

The purpose of this amendment is to bring clarity to this section. It makes clear that the reference to the account of the individual maintained by the credit institution or other person is a reference to the credit card account of the individual, as distinct from any savings or current account which the individual may have.

Question put and agreed to.

Amendments reported and agreed to.

An Ceann Comhairle

We come to Dáil consequential amendment No. 1. I observe that Seanad amendments Nos. 25a and amendments Nos. 124 to 127, inclusive, form a composite proposal. Seanad amendment No. 32 is consequential on Seanad amendment No. 126, Dáil amendment No. 1 is consequential on Seanad amendment No. 124 and Dáil amendment No. 12 is consequential on Seanad amendment No. 127. I suggest, therefore that we discuss Dáil consequential amendment No. 1, Seanad amendments Nos. 25a, 32 and 124 to 127, inclusive, and Dáil amendment No. 12 together, by agreement if that is satisfactory.

Mr. Rabbitte

I move amendment No. 1:

In page 11, subsection (1), between lines 25 and 26, to insert the following definition: " `credit intermediaries authorisation' means an authorisation granted under section 147;".

This amendment introduces into the Bill for the first time the definition of "credit intermediaries authorisation".

The new section 147, inserted by means of an amendment in the Seanad, lays down the procedure in relation to the application for and the grant of authorisations by the Director of Consumer Affairs.

Amendments No. 126 adopted in the Seanad inserted a new section relating to the amendment of a credit intermediaries authorisation. It is now necessary, on the advice of the Office of the Attorney General, to include a provision whereby the holder of such an authorisation complies with the requirements of subsection (1) which caters for a situation where a holder of the authorisation acting on behalf of the undertaking specified in the authorisation, commences business for an undertaking not specified in the authorisation, in other words, he could have been the holder of an authorisation for a particular finance house and changed to another finance house. Only the director or his staff can amend an authorisation.

Amendment agreed to.

An Ceann Comhairle

We now come to Seanad amendment No. 11. Amendment No. 68 is consequential. I suggest, therefore, that we discuss amendments Nos. 11 and 68 together.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 11:

In page 11, between lines 25 and 26, the following definition inserted:

" `credit-sale agreement' means a credit agreement for the sale of goods under which the purchase price or part of it is payable in instalments and the property in the goods passes to the buyer immediately upon the making of the agreement;".

On Report Stage in this House I introduced provisions which regulate credit sale agreements for the first time. However, on that occasion the Bill did not contain a definition of "credit sale agreement". The Seanad amendment rectified this omission and defines a credit sale agreement as a credit agreement for the sale of goods under which the purchase price or part of it is payable in instalments and the property in the goods passes to the buyer immediately upon the making of the agreement.

Section 38 provides that credit agreements other than an overdraft facility must contain the notice set out in Part I of the Third Schedule. The notice shows consumers at a glance the full extent of the financial commitment they are undertaking. Amendment No. 68 excludes credit sale agreements from having this form of notice because it cannot apply to an agreement for the purchase of goods.

Mr. T. Kitt

It is appropriate that we should pay tribute to our colleagues in the Seanad, which has been subjected to much criticism in the past. Despite devoting many hours to working on the Bill our colleagues in the Seanad found gaps and flaws and have managed to fill them by inserting a definition of "company" and now "credit sale agreement".

Given that many detailed and technical amendments are being made to the Bill, is the Minister of State worried that there may be other gaps? We should not lose sight of the purpose of the Bill which is to ensure the interests of the consumer are protected.

Mr. Rabbitte

Deputy O'Rourke made the point that if this Bill were to be the subject of discussions for a further six months it would continue to be amended. How long is a piece of string? I do not know the answer to the question put by the Deputy but this is a better Bill. My predecessor, Deputy O'Rourke, and I have been amenable to accept amendments. The inclusion of a reference to mortgages and housing loans, the transfer of power to supervise and monitor bank transaction charges from the Central Bank to the Director of Consumer Affairs, the stipulation that only the APR should be advertised constitute major changes.

The parliamentary draftsman has gone through the Bill with a fine comb. While some of the amendments appear to be pedantic the formulation is neater. I am not saying that further changes would not be made if the discussion continued until the autumn; these are not always substantive changes, frequently they are technical and the Bill is better as a result.

Question put and agreed to.

An Ceann Comhairle

We now come to Seanad amendment No. 12. Amendments Nos. 46, 47, 50, 51, 119 and 120 form a composite proposal. I suggest, therefore, that we discuss amendments Nos. 12, 46, 47, 50, 51, 119 and 120 together.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 12:

In page 12, between lines 29 and 30, the following definition inserted:

" `financial accommodation' includes credit and the letting of goods;".

In the course of amendments relating to advertising or offering credit in Part III of the Bill adopted on Report Stage in this House, the term "a financial accommodation" was introduced into the Bill. The Seanad amendment corrects the omission. As a result "a financial accommodation" now relates to all forms of credit and the letting or hiring of goods by means of hire purchase or consumer hire.

Section 24 deals with the advertising of availability of credit for goods or services. This section provides that the cash price, the total cost of credit, the number and amount of instalments, the duration of the intervals between instalment payments, the number of instalments which have to be paid before delivery of goods and details of any deposit payable must be included in the advertisement. The amendment replaces the reference to "credit" with the wider term "a financial accommodation" which is defined as including credit and the letting of goods.

Amendment No. 47 follows on from the previous amendment which replaces the word "credit" with "a financial accommodation". A specific requirement has now been placed on advertisers to state the nature of the financial accommodation on offer, for example, cash, loan, hire purchase or consumer hire. This transparency is important as consumers are often confused as to what credit product is on offer.

Section 26 requires that where an advertisement purports to compare repayments or costs under one form of credit it shall contain the relevant terms of each form of credit advertised. These amendments replace "credit" with the wider expression "a financial accommodation" which includes credit and hiring.

Section 140 relates to the making of regulations in relation to the duty to display information about the type of business being undertaken as regards the provision of credit. Consistent with the substitution in earlier amendments of the term "a financial accommodation" for the word "credit", this change of wording is now applied to section 140.

Mr. T. Kitt

I welcome warmly these amendments. We have stressed at all times that we support the idea that the system should be made more transparent. This is a good example where the consumer will be made aware of all the implications of a transaction. This is one of those nights when the Minister of State will obtain substantial support from this side of the House. We applaud his efforts in this area.

Mr. E. Ryan

I also welcome the amendments. One of the organisations which has been subjected to much criticism in selling goods is the ESB.

The ESB states clearly on the consumer's bill the number of payments that have been made, the number of payments to be made and the date when the agreement is terminated. That type of clarity helps people to budget because they know exactly where they stand. I congratulate the ESB for having done this on their own initiative. There are not many people from whom one borrows or purchases goods who will be so open about one's repayments.

I welcome this provision. It will clarify matters and help people who did not realise the various costs to avoid getting into a terrible mess.

Mr. Rabbitte

I appreciate the Deputies' comments. I have only seriously started to struggle with the date of implementation of the Bill. Its provisions are far-reaching and it will take some time for the Director of Consumer Affairs to prepare his office so that it will be capable of responding to the expected onslaught as a result of the new rights conferred on consumers and the new duties imposed on the director. We have dealt with this in the course of discussion on the Bill. In the Seanad a number of Senators pointed out that there is not much point in having the first major consumer Bill on the Statute Book if that information is not conveyed to the public. It is the intention of the director to engage in a promotion campaign about the Bill, the new powers it confers on consumers, their rights and how they vindicate them. For that reason, some sections of the Bill may be more slowly implemented than others because they will place serious and onerous new duties on the director and his office in particular.

Mr. E. Ryan

Problems always arise when people sign agreements without reading the small print. Would it not be the duty of lenders to show this new agreement? Can we put an onus on them to explain exactly what the agreement means and what rights the consumer will have? Unfortunately, I was absent from some of the debates on this Bill and perhaps the Minister has covered this matter in another section. However, the onus in this regard should be on the institution or the lender.

Mr. Rabbitte

There are specific impositions on the institutions to do precisely what Deputy Ryan asks. However, the institutions in turn have made representations to me that if we conclude this Bill and it is reported to the Seanad after tonight, they will require some time to prepare their systems to cope with those impositions. There will be enormous changes to application forms and so forth.

With regard to the other matter raised by Deputy Ryan, I remind him, since he has not followed the Bill closely before now, that the Bill provides for a 10 day cooling off period during which time the consumer can reflect on the bargain secured or otherwise.

Mr. T. Kitt

I stressed the importance of the information campaign when we discussed this previously. Can the Minister predict at this stage — and I appreciate that it is necessary to be ready on the day of implementation — what might be the date of implementation if we can get this Bill speedily to the Seanad?

Mr. Rabbitte

As I said to Deputy Ryan, I have only begun to struggle with that in recent days because there was so much work to do on the Bill. It was not clear that we would overcome the hurdles before the House rose. The banks have represented to me that they would need six months. Other institutions have made similar representations. They also point to the fact that they had to alter their systems to accommodate the Unfair Terms Directive, which we introduced in February this year, and that we would now require them to do that a second time. We are looking towards the end of the year for implementation of some sections of the Bill.

Question put and agreed to.

An Leas-Cheann Comhairle

Seanad amendments Nos. 13 and 14 are related and may be taken together.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 13:

In page 11, line 36 "or may" deleted and ", if the terms of the agreement are complied with," substituted.

In the case of a hire purchase agreement, the goods pass to the hirer once the hirer has complied with the terms of the agreement. Therefore, the implication in the former text of the Bill — that the goods "may" pass to the hirer — was incorrect and was, on the advice of the Office of the Attorney General, rectified by way of amendment in the Seanad.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 14:

In page 11, line 40 "or may" deleted and ", if the terms of the agreements are complied with," substituted.

Question put and agreed to.

Amendments reported and agreed to.

An Leas-Cheann Comhairle

We move to Dáil consequential amendment No. 2. Seanad amendment No. 21 is cognate and it is suggested that they be taken together.

Mr. Rabbitte

I move amendment No. 2:

In page 12, subsection (1), line 27, to delete "section 152" amd substitute "Part XV".

This relates to the question raised previously about pawnbrokers. The amendment relates to the definition of moneylender. A moneylender does not inter alia include any pawnbroker carrying on the business of pawnbroking in accordance with the provisions of the Pawnbrokers' Act, 1964. This Act is now amended by not alone section 152 but also sections 151 and 153 which, taken together, comprise Part XV of this Bill. This is the purpose of this amendment.

Seanad amendment No. 21 is a technical amendment to the pawnbrokers' legislation. Arising from amendments adopted on Report Stage in this House, the Pawnbrokers' Act, 1964 has now been amended not alone by section 152 but also by sections 151 and 153. These three sections, taken together, comprise Part XV of the Bill.

Amendment agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 15:

In page 13, between lines 30 and 31, the following definition inserted:

" `partnership' has the meaning assigned to it by the Partnership Act, 1890;".

This refers to the use of the term "partnership" which is used elsewhere in the Bill. Until Committee Stage in the Seanad it had not been defined. The self-explanatory amendment remedies this omission and inserts a definition of partnership.

Mr. T. Kitt

I note that the Partnership Act dates from 1890. It is clear that the word "partnership" has become a buzz word of the 1990s also. Having returned from the Irish Congress of Trade Unions meeting which the Minister also attended, it is appropriate that he raises the question of partnership tonight.

Question put and agreed to.

An Leas-Cheann Comhairle

Seanad amendment No. 16 is consequential on Seanad amendment No. 73a and they will be taken together.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 16:

In page 14, lines 1 to 5 deleted.

One amendment relates to interpretation and the other relates to successive credit agreements. The definition of successive credit agreements and section 49 dealing with successive credit agreements have been deleted. These were included in the Bill at a time when credit agreements included hire purchase agreements. This is not now the case as successive hire purchase agreements are provided for separately in section 75, Credit agreements such as cash loans cannot be the subject of the provisions of section 49 which provide that successive agreements shall be regarded as having revoked the earlier agreement and consisting of the combined terms of both agreements. It is essentially a tidying up provision.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 17:

In page 14, line 8, after "credit""exclusive of any sum payable as a penalty or as compensation or damages for breach of the agreement" inserted.

The total cost of credit does not include any sums payable as a penalty or as compensation or damages for breach of the agreement. Therefore, the purpose of this amendment is clarity. The underlying approach to the calculation of the cost of credit is that the consumer will at all times abide by the terms of the agreement. Thus, to build into the total cost of credit any cost in relation to a breach, which one assumes will not occur, would be erroneous. Therefore, such payments are now specifically excluded from the definition of the total cost of credit.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 18:

In page 14, between lines 8 and 9, the following definition inserted:

" `undertaking' means a company, partnership or any other person;".

The term "undertaking" is used elsewhere in the Bill to describe the person on whose behalf credit or mortgage intermediaries act, but the term "undertaking" had not been defined until now. The present insertion rectifies this and defines "undertaking" as a company, partnership or any other person.

Question put and agreed to.

An Leas-Cheann Comhairle

Seanad amendment No. 19 has already been discussed with Seanad amendment No. 5.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 19:

In page 14, lines 9 to 12, to delete subsection (2) and the following substituted:

"(2) In this Act a reference to a borrower, buyer, consumer, creditor, hirer, owner or seller includes a person to whom the borrower's, buyer's, consumer's, creditor's, hirer's, owner's or seller's rights or liabilities, as the case may be, under an agreement have passed by assignment or operation of law."

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 20:

In page 14, subsection (1), line 36, after "agreements""to which a consumer is a party" inserted.

Again, the purpose here is clarity. It makes clear beyond all doubt that the Bill applies only to agreements entered into by consumers and not to anybody else.

Question put and agreed to.

An Leas-Cheann Comhairle

Seanad amendment No. 21 has already been discussed with Dáil consequential amendment No. 2.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 21:

In page 14, subsection 2 (c), line 48, "section 152" deleted and "Part XV" substituted.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 22:

In page 15, paragraph (e), line 5, after "charge""other than by a seller of goods who has invited by advertisement consumers to avail of such credit" inserted.

The sale of goods on interest free credit is becoming more and more popular as a sales or marketing technique. However, quite often the price of the goods is inflated because of an inbuilt but undisclosed interest charge. This amendment means that sellers of goods who advertise them as being interest free are now covered by the Bill whereas, for example, the small shopkeeper who makes goods like bread or milk available on tick but does not advertise the fact is not covered by the Bill.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 23:

In page 15, paragraph (f), line 6, after "agreement""other than a credit agreement operated by means of a credit card" inserted.

The purpose of this amendment is to ensure that credit effected by means of credit cards are within the scope of the Bill. Section 3 sets out the application of the Bill and provides for certain exemptions, one of which being a credit agreement under which no interest is charged, provided the consumer agrees to repay the credit in a single payment. This amendment removes any confusion as to whether this exemption includes credit cards. It does not and credit cards are covered by the Bill.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 24:

In page 16, lines 40 to 42, subsection (1) deleted and the following substituted:

" .—(1) The Director may, in the interest of better informing consumers, by such means as he sees fit, and subject to this Act, issue a direction as to the location and size of any statement or notice required under this Act,"

The purpose of this amendment is twofold. The form and content of notice or statements required by this Act are already set out in the Bill. Therefore, the former reference here in section 6 to the form and content was unnecessary. Second, I wished to ensure that the Director of Consumer Affairs will have the necessary powers to issue a direction as to the location and size of any statement or notice in the interests of better informing the consumer as he sees it. In other words, the director may intervene if he thinks it is in the interests of the consumer.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 25:

In page 17, subsection (5), lines 21 and 22, "or the Minister, as the case may be," deleted.

The former reference in section 7 to the Minister exercising his investigatory functions was incorrect. Only the Director of Consumer Affairs has the power to carry out investigations of such practices or proposed practices where he considers that in the public interest, such investigations are proper. The Minister may only request the director to carry out investigations.

Question put and agreed to.

An Leas-Cheann Comhairle

Seanad amendment No. 25a has already been discussed with Dáil consequential amendment No. 1.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 25a.

In page 18, lines 47 and 48, in page 19, lines 1 to 41 and in page 20, lines 1 to 33, section 9 deleted.

Question put and agreed to.

An Leas-Cheann Comhairle

Seanad amendment No. 26 is a drafting amendment. Seanad amendment No. 27 is cognate on Seanad amendment No. 26 and both may be taken together.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 26:

In page 20, subsection (3), line 43, before "APR""the" inserted.

They are purely technical amendments which corrected the omission of the word "the" before APR. It is purely tidying up the legislation.

Question put and agreed to.

An Leas-Cheann Comhairle

Seanad amendment No. 27 has already been discussed with Seanad amendment No. 26.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 27:

In page 21, subsection (3) (a), line 30, before "APR""the" inserted.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 28:

In page 22, lines 24 to 31, subsection (8) deleted.

On the advice of the Attorney General's office, I deleted subsection 8 which allowed the Director of Consumer Affairs to agree in writing the manner of calculation of APR. The vesting of this power in the director, which came about from an amendment on Committee Stage in the House, is contrary to the provisions of the EU credit directives and had to be removed.

Question put and agreed to.

An Leas-Cheann Comhairle

It is noted that Dáil amendments Nos. 3 and 4 to Seanad amendment No. 29 and Seanad amendments Nos. 30 and 31 are related. It is suggested, therefore, that Seanad amendment No. 29, Dáil amendments Nos. 3 and 4 thereto and Seanad amendments Nos. 30 and 31 be taken together.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 29:

In page 22, lines 40 to 46 deleted and in page 23, lines 1 to 7 deleted and the following substituted:

"(a) in Part I, contravenes section 6 (2), 7 (10) or (11) or 11 (7),

(b) in Part II, contravenes section 28 or 29*, or regulations under section 30,

(c) in Part III, contravenes section 41,

(d) in Part V, contravenes section 45 (2),

(e) in Part VII, contravenes section 64, 67 (1) or 72,

(f) in Part VIII, contravenes section 90 or 95,

(g) in Part IX, contravenes section 97 (6) or (9), 98, 99, 102 (4) or (5)*, 103, 109* (3) or (4), 109 (2) or (3)*,

(h) in Part X, contravenes section 119 (1) or (2), 120, 125 (3), 126, 127, 131, 132 (2), 133, 134 (4) or (5), 135, 136 (1) or (2), 137 or 138 (3)*,

(i) in Part XI, contravenes section 141, 142, 145, 146 (2) or 147, or regulations made under section 140, or

(j) in Part XII*, contravenes section 147* (1) or (3) or 148*,".

Section 13 now specifies those sections, contravention of which results in the commission of an offence. A person who in Part I fails to comply with a direction given by the director in respect of the location and size of his statement or notice required under this Act; obstructs or interferes with an authorised officer in the exercise of his power to give or gives an authorised officer information which is false or misleading or fails to comply with any request or requirement of an authorised officer; displays or publishes an advertisement which does not comply with the advertising provisions of the Act; fails to ensure that a credit agreement to which he is a party complies with the provisions of Part IV; fails to provide within ten days of receipt of request in writing from a consumer a copy of the agreement or a statement of amounts paid; due but unpaid costs outstanding and the date and amount of each outstanding instalment; fails to ensure that a hire purchase agreement to which he is a party complies with the provisions of Part VII; enforces a right to recover possession of goods let under a hire purchase agreement otherwise than by legal proceedings; fails to inform the owner of the whereabouts of the goods if so requested by the owner; fails to ensure that a consumer hire agreement to which he is a party complies with the provisions of Part VIII; fails to inform the owner of the whereabouts of the goods if so requested by the owner; gives false or misleading information in respect of an application for a moneylender's licence; engages in the business of moneylending under a name other than that specified on the licence; fails to display an authorised copy of the moneylender's licence in his business premises; fails to state the words "moneylending agreement" in any moneylending agreement; obstructs or interferes with a member of the Garda Síochána acting with reasonable cause on the suspicion that a person is engaged in the business of moneylending without a licence; fails to comply with a request made of him by a member of the Garda Síochána where, with reasonable cause, the garda suspects he is engaging in the business of moneylending without a licence; fails to advance the full amount of the loan; obstructs or interferes with a member of the Garda Síochána entering any premises where he suspects, on reasonable grounds, that the business of moneylending is being carried on in contravention of the Bill; fails to comply with the requirement made of him by a garda acting under Part VIII; engages in the business of being a mortgage intermediary without an authorisation and an appointment in writing from each undertaking for which he is an intermediary; engages in the business of being a mortgage intermediary under a name other than that specified in the authorisation; fails to display in his business premises a copy of his authorisation; fails to comply with the requirements in relation to the calculation of APR; fails to comply with the requirements in relation to valuation reports; fails to comply with the requirements in relation to property insurance; fails to include the appropriate warning notice; fails to ensure that a housing loan agreement complies with the provisions of Part X; fails to supply documents and statements; fails to inform the borrower that he acts exclusively for a particular insurer or mortgage lender, as the case may be; fails to disclose various fees associated with housing loans; fails to include the appropriate warning notice in relation to endowment loans, or otherwise bring it to the attention of the borrower; fails to disclose the interest rate and penalties applied to arrears on housing loans; fails to comply with the direction given by the director in relation to the advertising of housing loans; fails to comply with the restrictions on inertia selling; knowingly sends circulars to minors; fails to comply with the duty to disclose information concerning the financial standing of the consumer; fails to inform the consumer of action taken on foot of notification from the consumer that the information held by him is incorrect; fails to disclose information concerning finance arranged; fails to comply with any regulation made in relation to a duty to display information; engages in the business of being a credit intermediary without an authorisation — I will read this again if the Deputy wishes — and a letter of recognition from each undertaking for which he is a credit intermediary; engages in the business of being a credit intermediary under a name other than that specified in the authorisation and fails to display in his business premises a copy of his authorisation shall be guilty of a summary offence. Persons found guilty of such an offence are liable to a fine not exceeding £1,500 or to imprisonment for a term not exceeding 12 months.

Amendment No. 28 designated that sections in Part IX relating to moneylending, contraventions of which shall be an indictable offence. A person who alters, falsifies or attempts to alter or falsify; a moneylender who fails to issue a person acting on his behalf with authorisation to so engage in the business of moneylending on his behalf, or a person who collects on behalf of a moneylender, without such authorisation; a person who engages in the business of moneylending without a moneylending licence and without maintaining a business premises for the purposes of moneylending; a person who acts on behalf of an unlicensed moneylender; a moneylender who fails to keep the necessary records; a moneylender who charges expenses on moneylending loans; a moneylender who fails to comply with the requirements relating to collection charges; a person who has possession or control of any document belonging to another person; a person who collects outside the permitted or agreed times; or a person selling goods on the occasion that a cash loan is advanced shall be guilty of an indictable offence.

Amendment No. 31 makes contravention of section 121, that is, prohibition on alteration or falsification of a mortgage intermediary authorisation, also an indictable offence.

The effect of consequential Dáil amendments Nos. 3 and 4 is to reposition the reference to section 147, nature of the finance arranged, to be explained to the consumer from paragraph (i) to paragraph (g). Paragraph (i) deals with those sections in Part XI, contravention of which results in a summary offence. Section 147 will, on the next print of the Bill, move into Part XII, credit intermediaries. Paragraph (g) contains the references to the sections in Part XII, contravention of which result in summary offence.

I trust that the explanation is clear.

Mr. T. Kitt

I will not ask any questions about that lengthy list. The Minister reminds me of the missionaries who used to visit the towns and villages of Ireland and frighten the parishioners so that when they were asked to renounce Satan they would do so. We talked earlier about the need to make the public aware of the details and I presume the Minister has got his message across. I agree with the Minister on this occasion.

An Leas-Cheann Comhairle

Prior to finalising Seanad amendment No. 29, we must deal with Dáil amendments Nos. 3 and 4 to Seanad amendment No. 29. Dáil amendment No. 3 to Seanad amendments No. 29 has already been discussed with Seanad amendment No. 29.

Mr. Rabbitte

I move Dáil amendment No. 3 to Seanad amendment No. 29:

In paragraph (i), to delete ", 146 (2) or 147" and substitute "or 146 (2)".

Amendment to the amendment agreed to.

Mr. Rabbitte

I move Dáil amendment No. 4 to Seanad amendment No. 29:

In paragraph (i), to delete "or 148" and substitute, "148 or 147".

Amendment to the amendment agreed to.

Seanad amendment No. 29, as amended, agreed to.

An Leas-Cheann Comhairle

Seanad amendment No. 30 has already been discussed with Seanad amendment No. 29.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 30:

In page 23, lines 12 and 13, paragraph (c) deleted and the following substituted:

"(c) in Part IX, contravenes section 100, 101, 102 (1) or (2), 104, 105, 106, 107 (2), 110, 113 or 114,".

Question put and agreed to.

An Leas-Cheann Comhairle

Seanad amendment No. 31 has already been discussed with Seanad amendment No. 29.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 31:

In page 23, subsection (2), line 14, after "section""121 or" inserted.

Question put and agreed to.

An Leas-Cheann Comhairle

Seanad amendment No. 32 has already been discussed with Dáil consequential amendment No. 1.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 32:

In page 23, between lines 15 and 16, the following paragraph inserted:

"(f) In PART XII, contravenes section 149,".

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 33:

In page 24, lines 1 to 6, subsections (1) and (2) deleted and the following substituted:

"(1) An offence under this Act (other than an offence for contravening Part IX) may be prosecuted summarily by the Director.

(2) An offence under this Act for contravening Part IX may be prosecuted summarily by a member of the Garda Síochána.".

This amendment deals with the prosecution of offences consistent with the thrust of the Bill. Any summary offence, other than an offence for contravening the moneylending provisions, shall be prosecuted by the Director of Public Prosecutions rather than by the director or the Minister. As regards an offence under the moneylending provisions, the gardaí may prosecute summarily.

Question put and agreed to.

An Leas-Cheann Comhairle

Seanad amendment No. 36 is cognate and Seanad amendments Nos. 35 and 37 are consequential on Seanad amendments Nos. 34 and 36, respectively. Seanad amendments Nos. 34 to 37, inclusive, may be taken together.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 34:

In page 24, line 20, "the Minister or" deleted.

As a result of amendments made to section 15 in relation to the bringing of summary prosecutions, the references to the Minister in this section relating to the cost of prosecutions or Minister or director, as the case may be, are superfluous. Accordingly, these incorrect references have now been deleted.

Question put and agreed to.

An Leas-Cheann Comhairle

Seanad amendment No. 35 has already been discussed with Seanad amendment No. 34.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 35:

In page 24, line 21, ", as the case may be," deleted.

Question put and agreed to.

An Leas-Cheann Comhairle

Seanad amendment No. 36 has already been discussed with Seanad amendment No. 34.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 36:

In page 24, line 22, "the Minister or" deleted.

Question put and agreed to.

An Leas-Cheann Comhairle

Seanad amendment No. 37 has already been discussed with Seanad amendment No. 34.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 37:

In page 24, lines 22 and 23, ", as the case may be," deleted.

Question put and agreed to.

Mr. Rabbitte

I move that the Committee agree with the Seanad in amendment No. 37 (a):

In page 24, lines 25 to 39, section 17 deleted.

The omnibus provision in former section 17 concerning unenforceability has been deleted. During Report Stage in this House I tabled a number of amendments to those Parts of the Bill dealing with general credit agreements, Part IV; hire purchase, Part VII and consumer hire agreements, Part VIII,-and thereby inserted in each of those Parts a separate and specific enforceability provision. These are contained in sections 40, 62 and 88 which, similar to section 17, provide that agreements which do not comply with the requirements as to form and content are not enforceable by a creditor or owner. The new sections also mirror the proviso contained in section 17 where if a court is satisfied that the failure to comply was not deliberate and has not prejudiced the consumer, the agreement may be regarded as enforceable.

The updating of the cross-reference contained in amendment No. 77 — and this relates also to amendment No. 76 — will happen automatically and thus does not require an amendment. I will not move amendment No. 77. I wish to bring to the attention of Deputies that the reference in amendment No. 76 to insert subsection (1), is a reference to subsection (1) inserted by way of amendment No. 74.

An Leas-Cheann Comhairle

As it is now 10 o'clock I am required to put the following question in accordance with an Order of the Dáil on this day:

"That the amendments set down by the Minister for Enterprise and Employment consequential on Seanad amendments, and to Seanad amendments, and not disposed of are hereby agreed to in Committee; and in respect of each of the Seanad amendments undisposed of, other than Seanad amendment No. 77, that the Seanad amendment or, as appropriate, the Seanad amendment, as amended, is hereby agreed to in Committee; agreement to the amendments or, as appropriate, the amendments, as amended, is accordingly reported to the House; and that the Dáil hereby agrees with the Committee in its report."

Question put and agreed to.

An Leas-Cheann Comhairle

A message will be sent to the Seanad accordingly.