Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I move amendment No. 3:

In page 3, between lines 12 and 13, to insert the following: “Amendment of section 103 of Consumer credit Act 1995

2.The Consumer Credit Act 1995 is amended by the substitution of the following section for section 103:

“Restriction on Interest Rates and Total Cost of Credit on Credit made available by means of Moneylending Agreements

103.(1) For the purposes of section 93(10)(g), subject to subsection (2), “usurious” or “excessively high” shall, for a period no longer than three years after the coming into operation of this section, be defined as—

(a) a simple interest rate of 0.75 per cent per week up to a maximum of 36 per cent per annum on credit advanced for a cash loan, or

(b) a nominal interest rate of 1.92 per cent per month which is to be applied to the outstanding balance for loans provided on a running account.

(2) For the purposes of section 93(10)(g), subject to subsection (2), “usurious” or “excessively high” shall, no later than three years after the coming into operation of this section, be defined as—

(a) a simple interest rate of 0.35 per cent per week up to a maximum of 18 per cent per annum on credit advanced for a cash loan, or

(b) a nominal interest rate of 1.92 per cent per month which is to be applied to the outstanding balance for loans provided on a running account.

(3) The Central Bank shall make regulations for the proper and effective regulation of the obligations set out in subsections (1) and (2),

(4) Notwithstanding the obligations set out in subsections (1) and (2), regulations made under subsection (3) may contain any transitional and other supplementary and incidental provisions that appear to the Central Bank to be appropriate.

(5) Any transitional provisions referred to in subsection (4) and contained in regulations referred to in subsection (3) shall cease to have effect no later than three years after the passing of this Act.

(6) The Central Bank shall, from time to time and at least once every three years following the date in which this section is commenced, publish a report—

(a) on the cost of credit made available to borrowers by means of moneylending agreements and in the context of the cost of credit made available by other lenders,

(b) assessing the appropriateness of restrictions on the cost of credit made available to borrowers by means of moneylending agreements,

(c) containing advice or recommendations, as the Central Bank considers necessary or appropriate, to adjust restrictions on the cost of credit made available to borrowers by means of moneylending agreements.

(7) The Minister may make regulations to adjust restrictions to the cost of credit to the consumer under a moneylending agreement, including those specified in subsections (1) and (2).

(8) Before preparing draft regulations under subsection (7), the Minister shall consider recommendations that the Central Bank may make under subsection (6)(c).

(9) Subject to subsection (8), before making regulations under subsection (7), the Minister may consult with any persons that the Minister considers should be consulted.

(10) If the Minister does not accept any recommendation of the Central Bank in the report published under subsection (6), or fails to make regulations giving effect to such a recommendation within one month of that recommendation being made, the Minister shall within two months of that recommendation being made prepare and lay before each House of the Oireachtas a statement of the Minister’s reasons for not accepting it.”.”.

We have teased out some of this ourselves, or at least I have done my best to tease it out. The Minister of State continues to make the point that his Bill is more comprehensive, although I level the charge that he does not even know what his own Bill does. In fairness to the Minister of State, when I asked him what the effect of his Bill would be on a loan of €1,000, he gave the wrong figure.