Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

We can define what is meant by "longer term".

The longer term means over one year but Provident Personal Credit Ireland is licensed by the Central Bank to charge this rate for a six-month period and it amounts to €228.75 on €500, for which there is no justification.

With regard to long-term loans, the survey shows that one in five people took out new loans before another loan had been paid off and that 70% use loans to reduce the existing loan while extending the period in which they owe money to the moneylender. We have graphs showing that 47% of people have loans for one to five years from the moneylender and that 38% are in hock to the moneylender for over five years. These are not new revelations and it is clear that moneylenders licensed by the Central Bank to provide short-term money have these customers in their grip for a long period. The Central Bank survey is not new; the one completed in 2007 showed similar patterns. Nevertheless, the rate that allows the moneylender to have a profit of €228.75 on a €500 loan is unacceptable.