Dáil debates

Tuesday, 3 December 2013

Credit Reporting Bill 2012: Report and Final Stages

 

5:35 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move amendment No. 4:

In page 15, between lines 24 and 25, to insert the following: "14. (1) Licensed moneylenders shall be required to consult the Register before providing a loan in excess of €500.".
Amendment No. 4 requires licensed moneylenders in the State to consult the new credit register before providing a loan in excess of €500. This is an important amendment. The typical loan provided by licensed moneylenders in the State would be €500. The recent report by the Central Bank provided confirmation of the growth in activity by licensed moneylenders. By their nature, such loans are high risk. From the point of view of the borrower, a loan that starts off at €500, given the high interest rates that apply, can grow quite substantially over a period of months. If the liability remains outstanding for a year or more, the borrower can owe a considerable sum of money.

The present threshold is too high. Deputy Pearse Doherty tabled a separate amendment, amendment No. 5. Given the specific and unique characteristics that apply to the licensed moneylending sector, it should be required to consult with the register because it is quite possible that individuals will have multiple loans from different licensed moneylenders across the system without any of the other moneylenders knowing that such money is owed. It is something that should be looked at to ensure that proper credit decisions can be taken by the moneylenders.

Comments

No comments

Log in or join to post a public comment.