Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I thank Dr. McCarthy. I welcome that research, especially the research which was done in Ireland. It is interesting following the two debates, while there were different restrictions in respect of payday lending, that the same types of argument were put forward regarding illegal moneylending. I refer to the scare factor, and the impact that it might have had in the debate in the UK, but it did not play out that way ultimately. Although people have access to credit union lending, we know that what is important in this context is ease of access, such as in situations where someone calls to people's doors to offer a loan or the ability to roll over an existing loan. It is that ease of access that then causes people to use these channels and end up paying €300 for a €500 loan over 12 months, compared to €30 for the same loan amount in the credit union.

On that point, and I direct this question to Mr. Whelan or Ms Corcoran, and regarding the changes taking place within moneylending operations as a result of the lockdown, what are we seeing as a result of moneylenders not being able to call to people's doors to collect money? I refer to the online payment methods now being facilitated in this context. The argument that used to be made concerning the reason for the high cost of such credit centred on the labour cost involved, and that was why costs needed to be that high. Are we now seeing any changes happening in this regard, in Ireland or Britain, or in both, as a result of this current situation? Does this situation now create an opportunity for us to begin a reduction of that first tier of the interest rates charged? In the witnesses' view, should we announce the ultimate point to which we believe the interest rates being charged should be brought down and then step that change to the desired level over several years?