12 Proinsias De Rossa asked the Minister for Industry and Commerce when it is intended to introduce the wide ranging measures to curb abuses associated with moneylending which were promised in the Programme for Economic and Social Progress.
The preparation of draft legislation on consumer credit, including moneylending, has progressed to the point where I expect shortly to seek Government approval for the principles involved.
As the Deputy may be aware, the proposed legislation is 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 or 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. The special problems associated with moneylending and the way in which they can be addressed in legislation such as this will be encompassed in the decisions to be made shortly.
Is the Minister aware of complaints from what I would call the orthodox moneylenders that they have not been consulted about the principles of this legislation——
The banks.
——and that they ought to be so consulted? Second, having regard to the extent of the problem in some areas of Dublin and in certain parts of the country where there is effectively rule by intimidation by the unofficial moneylenders, would the Minister give a more precise indication of when the legislation is likely to be brought before the House?
I was not aware of any complaint from the official, or orthodox, moneylenders. I met a group representative of them several months ago and they voiced their concerns and views to me. My Department, to my knowledge, have had a fair degree of correspondence with them. On the question of when the legislation will come before the House, I regret to say that I cannot say that precisely. It was submitted to me recently and I suggested certain changes and it will be resubmitted within the next few weeks, I understand with a view to its circulation at that stage. There will have to be further discussions with the Departments of Social Welfare and Justice, two main Departments involved, and arising out of that I hope it will be possible to finalise the proposals, have them drafted and brought before the House.
First, I welcome the action proposed by the Minister to bring forward legislation in this area, particularly given the widespread abuse of moneylending and the difficulties this causes to many vulnerable families over the past number of years. Is there any provision in the legislative proposals that people who partake in moneylending must have a registered office in the area where they are operating, because people working with groups who are in receipt of social welfare tell me that the most flagrant cases of abuse occur when people come into an area and go from door to door using door to door sales techniques. Is there any provision that moneylenders must have a registered office in the area of operation?
In so far as I know what the present law is—and I am not terribly familiar with it—I do not think there is such a requirement at present. Certainly in view of what the Deputy has said, we could give every consideration to making a provision like that a requirement in the proposed law.
