Austin Deasy
Ceist:17 Mr. Deasy asked the Minister for Enterprise and Employment the number of moneylender licences which were issued in 1996; and the maximum interest rate per annum allowed to be charged by such licensed operators. [7742/97]
Written Answers. - Moneylender Licences.
With the entry into force of the Consumer Credit Act, 1995, on 13 May 1996, responsibility for the licensing of moneylenders resides with the Director of Consumer Affairs. Previously the licences were issued by the Revenue Commissioners on foot of a certificate granted by the appropriate Circuit Court.
Section 93 of the Act governs the granting of licences and in particular subsections (3) (a) (iv) and (v) require that a would-be applicant must provide an itemised statement of the proposed total cost of credit, that is, APR and details of collection and all other charges not included therein; subsection 8 (e) and (f) provide that the licence shall contain an itemised statement of the APR and details of collection and other charges not included therein; and subsections (10) (g) empowers the director to refuse a licence on the grounds that the proposed cost of credit would be excessive.
The Minister of State with responsibility for Commerce, Science and Technology has been informed by the Director that he granted 74 moneylenders' licences during 1996. The maximum APR which the Director has allowed licenced moneylenders to charge is 214 per cent. It should be noted that this rate applies in only a small number of cases. The majority of lenders licensed charge considerably less. By virtue of section 151 of the Act, the public can now inform themselves of the rates being charged by each licensed moneylender. A public register for this purpose can be inspected at any of the Director's offices.
Finally, I would like to draw the attention of the Deputy to section 47 of the Act which provides that a consumer or someone acting on behalf of a consumer can challenge the cost of credit in the courts if it is considered to be excessive.In any such case the court is obliged to take into account specific factors such as the interest rates prevailing at the time, the age, business competence and level of literacy and numeracy of the consumer, the degree of risk involved to the creditor, the creditor's costs and the level of competition for the type of credit provided. To date there has been no cases initated under section 47. Section 48 goes on to state that if the court finds the total cost of credit is excessive, it may reopen the moneylending agreement. This could result in the consumer being given a refund of any excessive costs paid or in the agreement being wholly set aside. It also allows the Director to revoke or suspend the moneylending licence.