Austin Deasy
Question:17 Mr. Deasy asked the Minister for Enterprise and Employment the number of moneylender licences which were issued in 1996; and the maximum interest rate per annum allowed to be charged by such licensed operators. [7742/97]
Vol. 478 No. 1
17 Mr. Deasy asked the Minister for Enterprise and Employment the number of moneylender licences which were issued in 1996; and the maximum interest rate per annum allowed to be charged by such licensed operators. [7742/97]
With the entry into force of the Consumer Credit Act, 1995, on 13 May 1996, responsibility for the licensing of moneylenders resides with the Director of Consumer Affairs. Previously the licences were issued by the Revenue Commissioners on foot of a certificate granted by the appropriate Circuit Court.
Section 93 of the Act governs the granting of licences and in particular subsections (3) (a) (iv) and (v) require that a would-be applicant must provide an itemised statement of the proposed total cost of credit, that is, APR and details of collection and all other charges not included therein; subsection 8 (e) and (f) provide that the licence shall contain an itemised statement of the APR and details of collection and other charges not included therein; and subsections (10) (g) empowers the director to refuse a licence on the grounds that the proposed cost of credit would be excessive.
The Minister of State with responsibility for Commerce, Science and Technology has been informed by the Director that he granted 74 moneylenders' licences during 1996. The maximum APR which the Director has allowed licenced moneylenders to charge is 214 per cent. It should be noted that this rate applies in only a small number of cases. The majority of lenders licensed charge considerably less. By virtue of section 151 of the Act, the public can now inform themselves of the rates being charged by each licensed moneylender. A public register for this purpose can be inspected at any of the Director's offices.