I am aware of the Financial Regulator's recently published review of the licensed moneylending industry. The purpose of this review was to gain a greater understanding of the industry and to determine whether it is appropriate, necessary and reasonable to change current regulatory policies.
It is not my function or that of the Financial Regulator to endorse any type of credit provider as being socially beneficial. Responsible use of credit clearly can have advantages for consumers in terms of their lifestyles but the decisions can only be made on an individual basis in the light of the consumer's needs and means. The Financial Regulator recommends that consumers take on the right type of credit for the right purpose.
The Financial Regulator provides information about the different forms of credit available to consumers, including credit cards, overdrafts, hire purchase, personal loans and money lending. The Financial Regulator also recommends a number of steps that borrowers should take including shopping around for the cheapest loan, reading all loan agreements, reviewing their debts from time to time and not taking on more debt than they can afford. Borrowers should immediately get in touch with the lender if they have any difficulty in meeting repayments, or contact their local MABS centre.
I strongly endorse these recommendations. In particular, I would urge all consumers to shop around for credit, to examine the scope to borrow from community based lenders such as credit unions, and to avail of the more detailed information which is available through the Financial Regulator's publications, help-line (Lo call 1890 77 77 77) and website: http://www.itsyourmoney.ie.