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Financial Services Regulation

Dáil Éireann Debate, Wednesday - 26 September 2012

Wednesday, 26 September 2012

Questions (130, 139)

Brendan Smith

Question:

130. Deputy Brendan Smith asked the Minister for Justice and Equality if he will provide details in relation to the body or agency currently responsible for dealing with unlicensed money lenders; the manner in which unlicensed money lenders are currently being dealt with by An Garda Siochána or any other agency under his Department; the number of prosecutions and convictions that have been secured against unlicensed moneylenders operating unlawfully in the State within the past five years; his views on the problem; and if he has any proposals for dealing with the matter of unlicensed moneylenders operating unlawfully in the future. [40832/12]

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Brendan Smith

Question:

139. Deputy Brendan Smith asked the Minister for Justice and Equality if he will provide details in relation to the body or agency currently responsible for dealing with unlicensed money lenders; the manner in which unlicensed money lenders are currently being dealt with by An Garda Siochána or any other agency under his Department; the number of prosecutions and convictions that have been secured against unlicensed moneylenders operating unlawfully in the State within the past five years; his views on the problem and if he has any proposals for dealing with the matter of unlicensed moneylenders operating unlawfully in the future. [40831/12]

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Written answers

I propose to take Questions Nos. 130 and 139 together.

The regulation of licensed moneylending is a matter primarily for my colleague, the Minister for Finance. The Central Bank of Ireland is the competent Authority in this jurisdiction with regard to licensed moneylending and in overseeing and regulating such activity.

Legislative provisions relating to the regulation of moneylending are contained in the Consumer Credit Act 1995 which is the responsibility of the Minister for Jobs, Enterprise and Innovation and unlicensed moneylending is an offence under that Act. My Department’s responsibility relates to the involvement of the criminal justice system in dealing with allegations of criminal activity. Persons who engage in money lending and who do not hold the necessary licence granted by the Central Bank are committing an offence under section 98 of the Act, which provides for a prohibition on engaging in the business of money lending without a licence.

Complaints may be made to the Gardaí who have power to bring prosecutions against unlicensed operators. The powers of An Garda Síochána in tackling illegal moneylending are principally contained in sections 105 to 109 of the Act, which make provision for a number of matters including Garda powers of entry and arrest.

A person who is found guilty of an offence under the Act is liable, on summary conviction, to a fine not exceeding €3,000 or imprisonment for a term not exceeding 12 months or both, or on conviction on indictment, to a fine not exceeding €100,000 or imprisonment for a term not exceeding 5 years or both.

I am informed that the latest available figures provided by the Courts Service indicate that no prosecutions for such an offence have been recorded over the past five years.

There are also a number of provisions in the criminal law which may be of relevance in particular circumstances, for example, section 10 and section 11 of the Non-fatal Offences against the Person Act 1997 and section 17 the Criminal Justice (Public Order) Act 1994 which provide for a range of offences including offences relating to harassment, extortion and demanding money with menaces. While these criminal law measures are being utilised, it should be noted that these offences have wider implications than money lending and there is no information available as to their use specifically with regard to money lending activities.

With regard to these matters I am assured by the Garda authorities that where offences under section 98 of the Consumer Credit Act 1995 are disclosed, and are reported to An Garda Síochána, the matter will be the subject of investigation under the direction of the local District Officer, with relevant expert assistance available from the Garda Bureau of Fraud Investigation.

As I stated before, I would, therefore, encourage those who may have information concerning the operation of unlicensed money lenders in particular circumstances to make that information available to An Garda Síochána who will take all measures open to them to enforce the law in this area.

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