Directive 87/102/EC was due to be implemented by EC member states by 1 January 1990. However, it was amended in a number of significant respects by Directive 90/88/EC which was to be implemented by 31 December 1992. Its preparation has necessitated considerable research and widespread consultation with a large number of bodies, institutions and individuals. The option of implementing these measures by way of an Act of the Oireachtas rather than by way of regulations has unavoidably contributed to the delay. The Consumer Credit Bill will constitute a major legislative measure.
I am pleased to say that the Bill contains a series of provisions to tackle in particular the problems of excessive loan charges and unlicensed moneylending.
The Bill will introduce a body of reforms which go beyond the strict requirements of the Directive, will consolidate existing consumer credit law in one unified Bill and will address in an innovative and effective way problems associated with moneylending.
It is envisaged that the maximum penalties for unlicensed moneylending will be increased to £50,000 and/or five years imprisonment.
I have been consulting with the interested groups such as the Society of St. Vincent de Paul, the Consumer Credit Association and the Consumer Association of Ireland. I hope to bring forward this legislation within a matter of months.