I propose to take Questions Nos. 85 to 91, inclusive, together.
The Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Act 2022 will bring all the direct and indirect providers of credit (including credit which is termed ‘buy now pay later’), as well as the providers of hire purchase and consumer hire agreements, to consumers within the regulatory remit of the Central Bank of Ireland. This will also allow the Central Bank to collect data on the size of that market.
This will also allow the Central Bank to apply the Consumer Protection Code 2012 (and any other relevant code, or any relevant regulation or direction the Central Bank may make under the Central Bank Acts) to such credit providers. In this regard the Deputy may wish to note that the Central Bank has, on 29 March last, published a Notice of Intention to amend the Consumer Protection Code so that relevant provisions of the Code, including those contained in Chapter 5 in relation to ‘Knowing the Consumer and Suitability’, will apply to the credit providing entities which will now come within the scope of Central Bank regulation and to existing regulated entities which provide ‘buy now pay later’ type credit. The Notice of Intention is available to view on the consumer protection section of the Central Bank’s website.
In relation to reporting to the central credit register (CCR), the provisions relating to the operation of the CCR are governed by the Credit Reporting Act 2013 and, under those provisions, lenders are obliged to submit information to the CCR on a credit agreement or loan for €500 or more and are obliged to enquire on the CCR when considering loan applications of €2,000 or more. These requirements apply to any type of credit, irrespective of the terminology of the particular credit, which falls within the scope of the Credit Reporting Act.
The increased regulation of the credit market will enhance the level of consumer protection associated with the provision of credit and will over time facilitate the increased monitoring of the operation and level of the market for indirect credit.
The Deputy may also wish to note that the Competition and Consumer Protection Commission ('CCPC'), which is under the remit of the Minister for Enterprise, Trade and Employment, published consumer advice on 'Buy Now Pay Later' credit agreements in December 2021. This explained what BNPL is, what consumers need to know about this service and what to do if a person was unable to make payments.
In relation to legal action in the United States, I have no particular knowledge other than information which is in the public domain of the case referred to by the Deputy.