Seanad Éireann debate -
Thursday, 27 Jul 1933

Vol. 17 No. 10

Moneylenders (No. 2) Bill, 1933—Committee (Resumed).

Mr. Johnson

I move amendment 9c:—

New section. Before Section 18 to insert a new section as follows:—

18.—(1) No written communication relative to a moneylending transaction shall be addressed by the moneylender or his agent to the borrower otherwise than to the borrower at the address of such borrower as stated in the note or memorandum of the contract or, where no address is so stated, to the borrower at his usual place of residence for the time being.

(2) No moneylender shall visit such borrower, whether personally or by his agent, otherwise than at the address of such borrower as stated in the note or memorandum of the contract or, where no address is so stated, at the borrower's usual place of residence for the time being.

There has sprung up a practice amongst a certain class of moneylenders to bring what you might call blackmailing influences and certainly undesirable coercive measures to bear upon borrowers by approaching, either by letter or personal call, the business place of the borrower. It is when a man is in difficulties that he goes to a moneylender as a rule. In many cases it is the kind of resource that the borrower does not want to make public and, particularly, does not want to inform his employers about. I know of my own knowledge of a commercial traveller having been placed in a very difficult position indeed by the fact that a letter was addressed to him "care of his employers." It is a well-known rule in the commercial world that a letter sent to an establishment in that way may be opened by the firm and that was the case in the particular instance I have in mind. Of course, trouble ensued. In other cases it is not by letter that the moneylender approaches the borrower at his business premises, but by a personal call. As the person calling is very often known by the marks of his countenance, or by other signs, to be a moneylender's tout, again odium falls upon the person for whom he enquires. The object of the new section I have put down is to prevent that practice. I think the new section should commend itself to the House, because the practice is—I was going to say pure blackmail, but, if not quite pure, it is blackmail nevertheless. I ask the House to approve of this attempt to put down that practice.

Mr. Ruttledge

I have no objection whatever to the principle of the amendment being embodied in the Bill, but the amendment, as drafted, I am afraid, does not provide for all sorts of cases. Take, for example, a case in which a man borrows money and his address is stated. If, subsequently, he changes his address the amendment would not have effect. The amendment states: "No written communication relative to a moneylending transaction shall be addressed by the moneylender or his agent to the borrower otherwise than to the borrower at the address of such borrower as stated in the note or memorandum." However, that can be dealt with on the Report Stage, and I am prepared to accept the principle of the amendment.

Mr. Johnson

I would be glad if the Minister would bring in an amendment to fill that gap.

Cathaoirleach

We shall adjourn the amendment to the Report Stage.

Consideration of amendment adjourned to Report Stage.

Sections 18, 19 and 20 ordered to stand part of the Bill.

SECTION 21.

(1) This Act may be cited as the Moneylenders Act, 1933, and the Moneylenders Act, 1900, and this Act be cited together as the Moneylenders Acts, 1900 and 1933.

(2) This Act shall come into force on the 1st day of October, 1933.

Mr. S. Robinson

On behalf of Senator Comyn I move amendment 10:

Section 21, sub-section (2). To delete in lines 14-15 the words and figures "1st day of October, 1933" and to substitute therefor the words and figures "1st day of January, 1934."

Mr. Ruttledge

I accept the amendment. I understand that the Northern Ireland Act has also been fixed to come into operation on 1st January and I do not see any objection to the amendment.

Mr. Johnson

I should just like to point out that the effect of this amendment will be that the provision regarding the 39 per cent. interest would not have any effect on borrowings that take place between now and 1st January; that borrowers will have to pay excessive rates of interest up to the point where they can be assured that a court would declare it to be harsh and unconscionable. I think October 1st is late enough, and I should like some amendment to be put into the Bill which would prevent any charge higher than is fixed in the Bill in respect of any transaction after the date of the passing of the Act, not after the date of commencement of the Act. The date of the commencement of the Act will be 1st January. The date of the passing of the Act may be 16th August. It is the date of the passing of the Act that should be the determining date in regard to the rate of interest. I wonder will the Minister agree to that and bring in an amendment to cover that point?

Mr. Ruttledge

I am quite satisfied to try and meet that point. The reason for the delay, of course, is that rules of court and regulations will have to be made and you will have to allow a certain time to elapse. I have been informed that 1st January would be reasonable. I will look into the matter that Senator Johnson raises. Personally, I would be in favour of making it effective from the passing of the Act.

Consideration of amendment adjourned for Report Stage.

Section 21 and the Schedules agreed to.

Bill reported with amendments.

Cathaoirleach

Will the Report Stage be taken to-morrow?

Mr. Johnson

I suggest that this Bill could remain over until after the adjournment. We will not be able to make enquiries that have to be made before to-morrow.

Cathaoirleach

Does the Minister agree?

Mr. Ruttledge

I agree.

Report Stage ordered for August 16th.

Cathaoirleach

By a previous resolution the House arranged to take the Committee Stage of the Agricultural Products (Regulation of Export) Bill, to-morrow. I ask the House to meet at 12 o'clock for that purpose.

Agreed.

The Seanad adjourned at 6.47 p.m. until 12 o'clock Friday, July 28th.