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

That is a very fair description of where we are, prior to the enactment of this legislation. It is a very fair assessment of what happens in many cases. It is why, for the first time, we are introducing a limit of 12 months on any loan. In the past, loans would just been rolled over repeatedly but now a loan will have to be brought to a conclusion at the end of the 12-month period. There will be a fresh application and the normal consumer credit checks by these companies will have to take ability to pay into account.

What the Deputy describes is exactly the position of many people. They were given loans that, effectively, they could not repay. There is almost an assumption the loan will roll over repeatedly. That will be stopped with this legislation. There is a 12-month limit for the first time and anybody who wants to get a loan for a second period will be starting from scratch with a fresh application. The Central Bank must be satisfied and it has the ability to monitor these companies, which will now be regulated. There are only a couple of dozen of them in the country. I am satisfied the Central Bank will monitor the provisions in this new legislation very closely. If it finds that, in effect, people are rolling over loans, the Central Bank will be able to take that into consideration in amending or revoking a company's licence or not renewing it. That option does not currently exist.