asked the Minister for Industry and Commerce the maximum rate of interest permitted to be charged by tontine societies; and whether there is any maximum rate of interest prescribed by law for similar bodies making small short-term loans.
Ceisteanna—Questions. Oral Answers. - Tontine Society Interest Rates.
49.
The Friendly Societies Acts, 1896 to 1966, do not lay down a maximum rate of interest which may be charged on loans issued to members of a society registered under these Acts.
I assume this is the type of society the Deputy has in mind.
The only statutory restriction on interest rates charged on loans by similar bodies is that contained in the Credit Union Act, 1966, which lays down, in respect of credit unions, a maximum rate of 1 per cent per month on the amount of the loan outstanding.
Does the Minister mean by this that there is no limit to the amount of interest which can be charged by tontine societies?
I mean what I say.
Might I ask the Minister if he means that there is no limit to the rate of interest which can be charged to people who borrow from tontine societies?
I mean what I said. The Act does not lay down the maximum rate of interest which may be charged.
We may take it then that these tontine societies may charge what interest they like.
If the Deputy wants further information may I refer him to the reply I gave him in February last.
Would the Minister not agree that it is a deplorable state of affairs that we should allow these——
Deputy Dr. O'Connell cannot be allowed to continue. He has already asked five supplementary questions.
I have asked one on this. This is a deplorable state of affairs and I think the Minister should immediately—he will have the support of this House—bring in legislation curtailing these activities.
The implication is that these societies are charging grossly excessive rates of interest.
I have no doubt they are.
I have no information to suggest that this is so. I gave the Deputy such information as I had in this regard last February and he has not in the interim brought to my attention anything to suggest that that information was wrong.
Is the Minister aware that trading cheques can be purchased to the value of £20 and can be cashed in a matter of hours for £15?
That does not arise on this question.
In view of the unsatisfactory nature of the Minister's reply I propose, with your permission, to raise this matter on the adjournment.
The Chair will communicate with the Deputy.
The Deputy did not give the Minister any information.
I am looking for information from the Minister.
I gave the Deputy the information. It is no use alleging this is going on when the Deputy does not know whether it is or not.
I know that 15 per cent interest is being charged by tontine societies.
Is that what they charge the Deputy?
I do not think this is a matter for joking.