Seán Sherlock
Question:122. Deputy Sean Sherlock asked the Minister for Finance the code of conduct sellers of personal contract purchase, PCP, must adhere to; and the engagement his Department has had on the code. [30515/20]
View answerWednesday, 14 October 2020
Questions (122, 123)
Seán Sherlock
Question:123. Deputy Sean Sherlock asked the Minister for Finance the breakdown of the current PCP loan book currently in operation by county in tabular form. [30516/20]
View answerWritten answers
I propose to take Questions Nos. 122 and 123 together.
In the answer to an earlier Parliamentary Question from the Deputy (Ref: 27576/20), Central Bank data on the number and value of outstanding Personal Contract Plan (PCP) agreements for car purchases was provided. However, the Central Bank has advised that this data is not available on a county by county basis.
Regarding the regulation of PCP agreements, PCPs are a form of hire purchase agreement and the relevant provisions of the Consumer Credit Act 1995 will apply to PCP and hire purchase agreements which are provided to consumers. However, the 'Tutty Report' on PCPs (available at: https://www.gov.ie/en/publication/5391e5-review-of-regulation-of-personal-contract-plans/) recommended that further consumer protections in relation to PCP agreements should be introduced; in particular, it recommended that the provisions of the Central Bank Consumer Protection Code which require lenders to assess the suitability of the product for the consumer and also the ability of the borrower to repay the debt over the duration of the credit agreement, should be extended to hire-purchase/PCP agreements. This will require legislation and the Minister has obtained Government approval to draft a Bill (see relevant press release attached: https://www.gov.ie/en/press-release/ab741f-minister-donohoe-announces-government-approval-to-draft-legislation-/) and it is the intention of Government to publish this Bill as soon as possible.
The Deputy may wish to note that consumers can refer complaints relating to PCP/ hire purchase providers to the Financial Services and Pensions Ombudsman.