Dáil Éireann Debate, Thursday - 1 June 2017
91. Deputy Michael McGrath asked the Minister for Finance the regulatory status of personal contract plans and the regulatory status of the car finance companies offering these products; if his Department or the Central Bank is examining this product from a consumer or regulatory perspective; the number and value of such plans entered into in the past number of years; and if he will make a statement on the matter. [26507/17]
Amharc ar fhreagraPersonal Contract Plans (PCP) are a form of Hire Purchase and both the Central Bank and the Competition and Consumer Protection Commission (CCPC) have certain functions and legal powers in relation to the provision of hire-purchase agreements.
The CCPC is responsible under the Consumer Credit Act 1995, for the authorisation of credit intermediaries, some of whom may sell PCPs to consumers on behalf of a finance company. A "credit intermediary" is defined as "a person...who in the course of his business arranges or offers to arrange for a consumer the provision of credit or the letting of goods in return for a commission, payment or consideration of any kind from the provider of the credit or the owner, as the case may be".
The CCPC provides licenses to credit intermediaries and keeps an online list of credit intermediaries holding a valid authorisation which is available on the CCPC website www.ccpc.ie. The CCPC also deals with complaints about the advertising of Credit Agreements and the advertising of car finance on credit intermediary websites and in the media.
The CCPC has a specific statutory remit to provide personal finance information and education to assist consumers. In this regard the CCPC has conducted research into the car market and car finance, and conducted numerous public awareness campaigns on the issue of car finance. I understand that the next campaign, which is due to coincide with the release of 172 registration cars, will commence in the coming weeks. The CCPC is also about to undertake further research to help inform its work in the PCP area.
The Consumer Credit Act 1995 sets out requirements in relation to the provision of hire-purchase agreements. However, it should be noted that hire-purchase providers are not subject (for the provision of a hire purchase agreement) to the requirements of the Consumer Protection Code 2012.
If a consumer has concerns regarding the activities of credit intermediaries, they may wish to contact the CCPC. The Financial Services Ombudsman can also investigate complaints from individual consumers about credit intermediaries.
