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Consumer Protection

Dáil Éireann Debate, Tuesday - 12 June 2018

Tuesday, 12 June 2018

Questions (233)

Michael McGrath

Question:

233. Deputy Michael McGrath asked the Minister for Finance the regulatory approach to hire purchase agreements; the role of different authorities in this regard; the application of the consumer protection code in this context; and if he will make a statement on the matter. [25241/18]

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Written answers

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.

Under current legislation (Consumer Credit Act 1995), the Central Bank has an overall role in relation to the operation of hire purchase agreements and the CCPC has responsibility for authorising and supervising the credit intermediaries. A "credit intermediary" is defined as "a person who in the course of his business arranges or offers to arrange for a consumer the provision of credit or the letting of goods in return for a commission, payment or consideration of any kind from the provider of the credit or the owner, as the case may be". The CCPC provides licenses 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.

The Financial Services and Pensions Ombudsman can also investigate complaints from individual consumers about credit intermediaries.

The Consumer Protection Code does not apply to hire purchase and consumer hire agreements.

The Deputy will be aware of the recent publications by the Central Bank and the CCPC on Personal Contract Plans which are a form of hire purchase. My Department is examining these publications and will give careful consideration to what further actions, including consumer protection measures, if any would be appropriate in the light of those reports.

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