Ciarán Lynch (Cork South Central, Labour) | Oireachtas source

Delegates from the Central Bank have appeared before the committee to discuss this issue, including concerns that Wonga and other companies might be targeting the Irish market. It was a satisfactory meeting in the sense that we were assured that the current licensing arrangements in this country are not attractive to Wonga because they are quite tight in comparison with those applying in some jurisdictions. The main concern is to avoid a situation here like what is happening in Britain, with these companies setting up on the high street and offering payday and one-week lending. Fortunately, the interest rates being applied by them are not obtainable in this country. The way the system works here is that a company applies for a licence to charge a particular interest rate, and no licence has ever been granted allowing for rates in excess of 450% or thereabouts. I understand Wonga and companies like it charge rates of 2,500% to 4,500%.