Ms Gráinne McEvoy:

It is not as straightforward as to address it in the context of a cap per se. The important measure to look at in this context would be the total cost of credit for the customer because there are unintended consequences, as I outlined in the opening statement, in terms of a straightforward and clean cap. In the legislation as currently drafted and in the regulations, the Central Bank has imposed a big degree of clarity for the customer about the total cost of credit over the length of time he or she is borrowing so that a person knows from the credit agreement right at the outset what he or she has borrowed, and if he or she is paying it back in the short term, on average nine months, exactly what it will cost by the time he or she has paid back the loan. Furthermore, there is clarity in terms of the provisions of the law that do not allow customers who perhaps have defaulted through no fault of their own or are late in meeting a repayment to be subject to additional penalties or charges in that context.

From our perspective, it is a complex issue. It is something that would require careful consideration. The better way of looking at things might be in terms of the total cost of credit to the customer because a cap might mean the duration of the loan is extended far beyond and you end up paying much more for your initial €200, €300 or €400 drawdown of the loan.