Dáil Éireann Debate, Thursday - 30 March 2017
181. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which a secure and reliable procedure for deduction at source of social protection payment can be effected to facilitate a building society (details supplied) in the case of a person (details supplied); and if he will make a statement on the matter. [15906/17]
View answerMy Department has advised me that the person in question is currently getting their social welfare payment directly into their building society account, so it should be possible for them to set up a direct debit facility with the building society in question (details provided).
With the exception of the Personal Micro Credit scheme the Department does not facilitate direct deductions from welfare payments for remittance to lenders. The aim of the Personal Micro Credit scheme is to move people away from the use of high cost moneylenders to provide an alternative, legitimate, and low cost personal loan scheme.
The Personal Micro Credit Scheme is offered to eligible applicants through their local credit union. Loans under the Personal Micro Credit scheme, known as It Makes Sense loans, range in value from €100 to a maximum of €2,000, and have a maximum interest rate of 12% per annum.
For applicants who receive their social welfare payment in cash (via a post office), the loan repayment must be made through the Household Budgeting facility, operated by An Post. For those who receive social welfare electronically (into an account in a financial institution), repayment must be made by standing order or direct debit, directly from the account into which their social welfare payment is made.
As Personal Micro Credit loans are only available from participating credit unions, it would not be possible for the person (details provided) to apply for their building society loan to be included.
