I propose to take Questions Nos. 16 and 22 together. Work in my Department is well advanced on the preparation of draft legislation to give effect to Council Directive 87/102/EEC on consumer credit. The general intent of this legislation will be to lay down rules which will, as far as possible, apply to all agreements under which credit is provided for consumers, including moneylending agreements.
The main effect of these rules will be to ensure that the consumer, when taking out a loan or otherwise availing of credit, will be given the maximum amount of information possible so that he or she is fully aware of the commitment being undertaken. The legislation will also lay down rules in relation to such matters as early repayment by the consumer, repossession by the creditor of goods sold on credit, the use of promissory notes, liability for faults in goods sold on credit etc.
Moneylending is one of the forms of consumer credit which is at present governed by detailed legislation. It was necessary to review this and other relevant legislation in the light of the measures now being prepared. In particular I am considering, in consultation with the Minister for Justice, the extent to which the special nature of moneylending as a form of credit needs to be recognised in the new legislation.
In regard to (d) of Deputy Bell's question I would point out that the European Community Directive does not contain any provision with regard to setting a limit on rates charged for credit. Some of the provisions of the Moneylenders Acts do relate to maximum rates; this issue is being addressed in the review of those Acts.
In regard to (b) and (c) the proposed legislation will provide for appropriate penalties for breaches of its provisions.