Dáil Éireann Debate, Tuesday - 17 April 2018
256. Deputy Thomas P. Broughan asked the Minister for Finance his views on the regulation of personal contract plans for car purchase finance; the level of this financial debt; the role of the Central Bank in this regard; and if he will make a statement on the matter. [15946/18]
Amharc ar fhreagraAs the Deputy will be aware the Competition and Consumer Protection Commission (CCPC) undertook the first comprehensive study of the Personal Contract Plans (PCP) market in the State. As part of its study the CCPC issued detailed questionnaires to all the financial institutions that underwrite PCP finance in the State. This allowed the CCPC to compile, for the first time, primary data relating to the number and value of PCP finance contracts issued. The report was published on Tuesday 6 March 2018 and is available at www.ccpc.ie.
The Deputy may also be aware that an Economic Letter on this area was published by the Central Bank on 28 March. This provides further comprehensive data on the PCPs market in Ireland, where at the end 2017 PCP finance accounted for 43%(€1.2 billion) of car-related bank debt. The Economic Letter is available at www.centralbank.ie .
My officials will examine these publications and give careful consideration to what actions, if any, would be appropriate and will consult with relevant stakeholders.
On the issue more generally, the Central Bank regulates financial services institutions as set out under legislation but does not regulate individual financial products. Under current legislation the CCPC has responsibility for authorising and supervising the credit intermediaries which typically sell PCP contracts to consumers, including garages and retailers.
