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

Section 2 provides for the terms "moneylender", "moneylending", "moneylender’s licence" and "moneylending agreement" to be replaced by the term "high cost credit provider", "high cost credit", "high cost credit provider's licence" and "high cost credit agreement", respectively. The purpose of this change in language is differentiate licensed providers more clearly from unlicensed lenders.

The many suggestions relating to advertising are currently catered for either by the Consumer Credit Association, CCA, or the moneylending code. In addition, the Central Bank has since published the moneylending regulations, which address areas like advertising and targeting. The requirements of the moneylending regulations should assist customers and consumers in becoming more informed and encourage them to consider alternatives. These requirements include that moneylenders insert an enhanced high-cost credit warning statement in all advertisements, regardless of whether advertising refers to a rate of interest or a cost of credit. The following text must be included in the warning statement: "Warning: This is high-cost credit. Consider alternative options before applying for this credit, including alternatives from other lenders regulated by the Central Bank of Ireland." The cost of credit must be clearly displayed on the moneylender's website, and they are required to provide an information notice on the application stage. Moneylenders' advertising must be clear, not misleading, and presented in a way that customers will know that it is an advertisement. Moneylenders can no longer make unsolicited contact on the recommendations of an existing customer, in other words, refer a friend. This is a very important issue that deals with vulnerable people who might be looking for funding in the run-up to some of the big family events.

Moneylenders are required to take reasonable steps to identify customers who are vulnerable customers and to ensure they are provided with the assistance that may be necessary. The essence of this legislation, which was not there before and which is very strong now, is that, before the moneylender gives a loan, they must look at the person's ability to repay that loan and take into account the existing financial commitments the person might have. There is a requirement for moneylenders to consider that. The whole tone of this legislation is that when the Central Bank is satisfied that some high-cost lenders are not actually doing that, it can have an impact on their licence. They could have it withdrawn, suspended or, ultimately, not renewed. This is the whole tone of the Bill. It is not just one section the deals with this.

Since we have spoken, the Central Bank has published its moneylending regulations to address the issue of advertising. The Competition and Consumer Protection Commission, CCPC, will have a role in advising consumers on this, separate from this legislation, even though it will also play a key part of it around consumer protection.

When it comes to granting licences, the Central Bank will take all of these matters into account any time it is issuing a licence or considering taking any action where there is an actual breach. The conduct standards required by the Central Bank of these licensed operators can be taken into account whereas up to now those factors were not specifically included in the legislation. There is a raft of areas dealing with consumer protection that perhaps had not existed heretofore.