Dáil Éireann Debate, Thursday - 14 December 2017
103. Deputy Michael McGrath asked the Minister for Finance the number of payday loan providers here; the number and value of loans outstanding to payday loan providers; the number and value of payday loans in arrears; the average interest rate on payday loans; the average interest rate on payday loans in arrears; if there are codes of conduct set out by the Central Bank; and if he will make a statement on the matter. [53762/17]
View answerAs the Deputy is aware, anyone wishing to engage in the business of moneylending requires a licence from the Central Bank in accordance with the Consumer Credit Act 1995 and this licence must be renewed every year.
Consumers of licensed moneylenders are protected by a range of provisions that moneylenders must adhere to, including but not limited to, the Consumer Protection Code for Licensed Moneylenders, the European Communities (Consumer Credit Agreements Regulations) 2010 and the Act. A licensed moneylender carries on the business of moneylending under the specific terms of the licence granted by the Central Bank.
Moneylending, as defined in the Consumer Credit Act 1995, is the practice of providing credit to customers on foot of a moneylending agreement which is, in essence, where the total cost of credit is in excess of an annual percentage rate (APR) of 23% or the agreement is concluded away from the business premises of the moneylender.
Although a number of firms have approached the Central Bank in relation to offering payday loans in the Irish market, the Central Bank has a robust licencing process in place and no such business model has been licensed by the Central Bank. The Central Bank assesses every request for authorisation as a moneylender in accordance with the relevant legislation and best practice.
Payday lenders will not be able to passport their services into Ireland without seeking authorisation from the Central Bank. The Central Bank will continue to monitor the licensed moneylender sector closely and to take action where necessary to protect borrowers’ interests.
