Dáil Éireann Debate, Tuesday - 30 January 2018
99. Deputy Willie Penrose asked the Minister for Finance the investigations and plans his Department has in respect of the regulation of personal contract plans and ensuring persons have adequate information on the cost of PCPs; and if he will make a statement on the matter. [4300/18]
View answer100. Deputy Joan Burton asked the Minister for Finance the investigations and plans he has in respect of the regulation of personal contract plans, PCPs, and ensuring persons have adequate information on the cost of PCPs; and if he will make a statement on the matter. [4137/18]
View answerI propose to take Questions Nos. 99 and 100 together.
Personal Contract Plans (PCP) are a form of Hire Purchase and both the Central Bank and the Competition and Consumer Protection Commission (CCPC) have certain functions and legal powers in relation to the provision of hire-purchase agreements.
The CCPC is responsible under the Consumer Credit Act 1995, for the authorisation of credit intermediaries, some of whom may sell PCPs to consumers on behalf of a finance company. I have consulted with the CCPC on this issue and have been informed that the CCPC provides licences to credit intermediaries and keeps an online list of credit intermediaries holding a valid authorisation which is available on the CCPC website www.ccpc.ie.
The CCPC also deals with complaints about the advertising of Credit Agreements, issuing Pawnbrokers licenses and the advertising of car finance on credit intermediary websites and in the media. The CCPC’s remit is limited to authorisation, as opposed to having a regulatory role for PCPs. It also has a specific statutory remit to provide personal finance information and education to assist consumers.
In 2017 the Competition and Consumer Protection Commission undertook the first comprehensive study of the PCP market in the State. The CCPC’s study set out to determine whether the current consumer protection regime is fit for purpose in this market. As part of its study the CCPC issued detailed questionnaires to all the financial institutions that underwrite PCP finance in the State. This allowed the CCPC to compile, for the first time, primary data relating to the number and value of PCP finance contracts issued. The CCPC is currently finalising its report and recommendations. It is expected that the study will be published in February.
