Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

This is related. Section 11 ensures that the APR provisions apply to credit and hire purchase agreements. The Central Bank may make regulations to amend the method of calculation. Later, we will deal with the fact that APR is capped at 23% for these services, which I support. At least it is being brought into line with other services. Going back to the example of Klarna, it offers interest-free credit up to a point. If you miss a payment, you are penalised. The APR that Klarna charges is way above 23%. Does section 11 include the groups that we have now included in the regulation of the service? What happens is that late payment fees are charged in relation to this. It is not just about bad credit checks or people borrowing too much. People are heavily penalised. Most of the customers are students or people on low income. At a time of high inflation, this makes matters worse. Klarna is just here and is new to people. It is a different way of money lending. It is fine if the customer is making their payments but a study that was done in Britain showed that one third of millennials who have used BNPL credit have been charged late payment fees. The study showed that the customers are 18 to 24-year-olds, over one third were 25 to 34-year-olds and some were even over 65. Many are students trying to get through college, and so on. These late payment fees can be as much as 40% of APR. Where does the APR fit in relation to this? How are these fees regulated under section 11?