Dáil Éireann díospóireacht -
Tuesday, 14 Dec 1999

Vol. 512 No. 6

Written Answers. - Licensed Moneylenders.

John Dennehy

Ceist:

88 Mr. Dennehy asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of moneylenders other than the associated and non-associated banks, credit unions and building societies licensed to provide credit; her views on whether existing legislation is adequate to prevent exorbitant charges being levied by these operators; the amount of credit outstanding under these arrangements; and if she will make a statement on the matter. [26924/99]

Tánaiste of State at the Department of Enterprise, Trade and Employment (Mr. T. Kitt)

The Consumer Credit Act 1995, which came into effect on 13 May 1996, allocated responsibility for issuing licences to moneylenders to the director of Consumer Affairs. The director has informed me that there are currently 66 licensed moneylenders operating in the State.

Applicants for a moneylender's licence must go through a formal application process. The Director of Consumer Affairs may refuse an applicant a licence on a number of grounds, including if, in the director's opinion, the cost of credit to be charged by the applicant is excessive or if any of the terms or conditions attaching thereto are unfair. I understand that, in a number of instances, her office has advised applicants that they would not be granted licences unless they reduced their proposed cost of credit. On each occasion, the moneylenders concerned reduced their proposed charges accordingly. The director has informed me that her office will continue to keep the total cost of credit charged by moneylenders under review.

The Director of Consumer Affairs estimates that approximately £60 million is currently outstanding by way of loans granted by licensed moneylenders. Loans granted by the ten largest licensed moneylenders represent the majority of this figure.