Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

Deputy Doherty’s amendment concerns BNPL credit products and it appears that its primary purpose is to cause a report to be produced by the Central Bank that would, having assembled and analysed the data sought, make recommendations to address the issued examined. Presumably the expectation is that, taking account of regulatory measures adopted elsewhere, there would be a recommendation to regulate BNPL providers.

This amendment is unnecessary and should be opposed because the Bill already provides for the regulation of BNPL credit providers. This is being done by widening the range of financial agreements which will fall within the regulatory scope of retail credit firms, from its current scope of cash loan credit agreements directly provided to customers to one which will also include deferred payment credit agreements directly or indirectly provided to customers. Therefore, this Bill will capture BNPL type credit. Furthermore, the Minister’s own amendment No. 4 will also provide that interest and cost-free credit agreements, including interest and cost-free BNPL credit agreements, will also be within scope where such agreements are advertised to consumers.

On the slightly separate point in Deputy Doherty’s amendment regarding information and data on the BNPL market, it should be noted that section 9 of the Bill inserts a new section 36EA into the Central Bank 1997 regarding the collection and publication of information on relevant agreements. In particular, it provides that the Minister may request that the Central Bank collect and publish information on credit and-or hiring agreements, which includes BNPL agreements, and such reports can be on a once off or recurring basis.

Furthermore, it should be noted that under existing legislation the Minister can seek reports from the Central Bank, such as under section 6A of the Central Bank Act 1942 and section 81 of the Consumer Credit Act 1995, and therefore there is no need to have sector-specific provisions in law to provide for this. Also, under the bank’s supervisory powers the Central Bank can gather information as necessary without these specific provisions. This information can be gathered at the behest of the Central Bank itself, without this provision. The Minister, separately to this provision, can request the Central Bank to provide this information. Therefore, there are two mechanisms already in place to facilitate the collecting of this data and the publication thereof.

In addition, the Central Bank regularly appears before various Oireachtas committees in relation to the performance of its functions, including its consumer protection functions, and members of the Oireachtas can avail of the opportunity to closely question the bank on all aspects of its work. Regarding Oireachtas scrutiny of the Central Bank and the power of the Minister to seek this information, the Central Bank's supervisory powers already give it the authority to seek this information and publish it. Accordingly, it is considered that the specific amendment proposed by Deputy Doherty, while well intentioned, is unnecessary. I will be opposing the amendment on that basis.