The regulation of moneylending is a matter for the Office of the Director of Consumer Affairs which operates under the control of the Department of Enterprise, Trade and Employment. The Deputy will be aware that the Consumer Credit Act, 1995, under which legal moneylenders operate, does not set down maximum interest rates for moneylending. These rates are set by prevailing market forces
My Department has a number of services available to respond to the problems arising in this area for low income earners and persons dependent on social welfare. The money advice and budgeting service, which was originally established in 1992 on a pilot basis as an approach to combating the problem of illegal moneylending, now operates nationwide through 50 local projects. The service is designed to target families and individuals identified as having problems with debt and moneylending. The projects give advice and assistance, but do not pay debts. Strong emphasis is placed on practical budget based measures that will succeed in removing people permanently from dependence on moneylenders and open up alternative sources of low cost credit through the credit union movement. Each local project is an independent information and service provider, deeply rooted in the local community. Management committees are drawn from local voluntary and statutory services and community groups and often include credit union representatives.
A review of the money advice and budgeting service is currently in progress. This review will consider how the programme is meeting its objectives and whether it is doing so in the most efficient and effective way possible. It is also intended that this review will be used to agree a strategic plan for the future development of the service so that it fully targets those who need it most. As soon as this is complete, I will consider the various issues raised in consultation with my colleagues as appropriate.
Second, through the operation of the household budget scheme with An Post, my Department assists people who receive certain social welfare payments with money management by enabling them to pay a regular amount towards various household bills by direct deduction from their payments. This scheme is used mainly to cover local authority rents and mortgages and utilities. There is also provision under the supplementary welfare allowance scheme through its exceptional needs payments, whereby persons may qualify for a once-off payment from the health board to help prevent undue hardship at times of exceptional expenditure.