Finance Committee to discuss Central Bank’s moneylending report

Bernard Sheridan, Director of Consumer Protection, Central Bank of Ireland, will appear before the Committee to discuss the Central Bank Report on the Licensed Moneylending Industry - November 2013.

Committee Chairman Ciarán Lynch said: “There were a number of worrying trends in the Central Bank report which was published late last year. While the number of active licensed money lenders in Ireland fell from 47 to 40 since 2007, the number of people using money lenders rose from approximately 300,000 in 2005 to around 360,000 at present and outstanding loan amounts are in the region of €200 million. A significant proportion – around a quarter - of customers surveyed experienced difficulties in making repayments in the past 18 months, with 63% of those reporting that repayment difficulties were caused by a drop in household income. According to the report, 77% of customers reported being refused credit from a credit union or a bank, even though more than half also reported having savings with these institutions. In terms of the annual percentage rate (APR), rates range across products from 17.23% to 188.45%, excluding collection charges. If a collection charge is included, rates range from 37.79% to 287.72%.

“Tomorrow, we will have a chance to consider the report in greater detail. The issue of moneylending is high on the Committee’s agenda and the rise in the number of people using money lenders is an issue of concern, particularly as many respondents reported that they had been refused credit from, or could not access, traditional mainstream lenders. The level of interest rates charged by moneylenders is among the matters we may explore as well as the possibility of capping interest rates. Mr Sheridan will also be asked as to what opinions or concerns the Central Bank may have about the continued expansion on the UK high street of payday loan operators, whose interest rates reach the several thousands and the possibility of this practice arriving into Ireland. Almost a quarter of customers were offered additional credit before the balance on their previous loans had been fully repaid and the issue of ‘rollover loans’ will also be on the agenda.”

This meeting will start at 3.30pm tomorrow, Wednesday, 29th January 2014 in Committee Room 4, Leinster House.

Committee proceedings can be followed live here.

Media Enquiries to:

Ciaran Brennan,
Houses of the Oireachtas,
Communications Unit,
Leinster House,
Dublin 2

P: +3531 618 3903
M: 086-0496518
F: +3531 618 4551

Committee Membership

Deputies

Richard Boyd-Barrett, People Before Profit
Michael Creed, Fine Gael
Pearse Doherty, Sinn Fein
Regina Doherty, Fine Gael
Stephen Donnelly, Independent
Timmy Dooley, Fianna Fáil
Alan Farrell, Fine Gael
Sean Fleming, Fianna Fáil
Simon Harris, Fine Gael
Joe Higgins, Socialist Party
Heather Humphreys, Fine Gael
Kevin Humphreys, Labour Party
Mary Lou McDonald, Sinn Fein
Ciarán Lynch, Labour Party (Chairman)
Michael McGrath, Fianna Fáil
Dara Murphy, Fine Gael
Kieran O’Donnell, Fine Gael
Aodhán O Ríordáin, Labour
Arthur Spring, Labour Party
Brian Stanley, Sinn Féin
Liam Twomey, Fine Gael

Senators

Sean D Barrett
Thomas Byrne
Paul Coghlan
Michael D’Arcy
Aideen Hayden
Tom Sheahan