Dáil Éireann Debate, Thursday - 26 November 2020
88. Deputy Pearse Doherty asked the Minister for Finance if he will support the Consumer Credit (Amendment) Bill 2018 and its objectives in reducing the usurious rates of interest charged by moneylenders; and if he will make a statement on the matter. [39229/20]
Amharc ar fhreagraAs the Deputy is aware, the Department of Finance undertook a public consultation in 2019 seeking views on capping the cost of licensed moneylenders and other regulatory matters in relation to moneylending. The submissions received, proposed a number of policy changes in relation to the moneylending industry and are broadly in favour of introducing an interest rate restriction.
A number of potential policy proposals are being prepared in light of these submissions and I expect to receive a draft report setting out these proposals, including in relation to interest rate restrictions, for my consideration shortly. Key to this process will be trying to balance improvements for borrowers with the potential for unintended consequences in terms of financial exclusion, if the supply of credit is reduced.
Once I has seen these proposals and considered them, my officials will liaise with the relevant Government Departments to seek consensus for a whole of government approach for the introduction of an interest rate cap and other regulatory changes.
In view of the ongoing work in my Department on this issue, I will not be supporting the Deputy's Bill at this point.
