Gerald Nash (Louth, Labour)

This is an important issue that needs to be debated not just here but across wider society. The moneylending business is a fact of life and it should be a matter of increasing concern for those of us concerned with those who find themselves on the margins of society. The uncomfortable fact is that moneylenders are often the last port of call for people who are brutalised and worn down by the challenges of just living to exist. This is a business, whether we are prepared to accept it, that profits from the misery of thousands of people. To say I am uncomfortable with this is an understatement.

I am also deeply uncomfortable that the State is presiding over a regulatory regime that has the effect of often compounding the financial problems of those driven into the arms of moneylenders in the first place. I note the facts outlined by the Minister of State earlier and I very much appreciate the position he proffered on how, if the provisions of this Bill as tabled were adopted, there could be unintended or unforeseen consequences which could exacerbate the horrendous circumstances in which many with relationships with licensed moneylenders and otherwise find themselves.

If we are to accept the status quo, however, we need to implement some urgent measures to take moneylending out of the darker recesses of society and the economy. The Central Bank's code of practice and a raft of consumer protection legislation, of which we are all aware, are all well and good. However, the Central Bank's code of practice does not come across the radar of most people struggling to survive and provide for their families in desperate circumstances. We are dealing here with many citizens who have severe literacy and numeracy challenges. We are dealing with people who have no idea whatsoever that they too have rights. We are dealing with dire situations where people have developed a dependency on the local moneylender and may even have an intergenerational relationship with him or her at the level of their own family. These are people who will not and cannot make a complaint because they do not know to whom they should complain or they distrust the institutions whose remit it should be to protect their interests. There could also be a fear of repercussions if complaints are made by those caught in this vicious cycle. That vicious cycle needs to be stopped.

Instead, it should be made easy to permit people to bring their concerns to the relevant authorities in respect of a moneylender, licensed or not. The public should be told repeatedly who these authorities are and awareness of them should be raised. I would prefer if moneylenders and loan sharks did not exist at all. Accepting that they do - human nature determines they always will be there – we need as a society to be much more forceful about bringing the practice of moneylending into the open while shining a light on the dark recesses and grey areas in which it operates.

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