Patricia Ryan (Kildare South, Sinn Fein) | Oireachtas source

Three years after the Tutty report, we finally have legislation which, hopefully, will deal with the concerns expressed in that report. This Bill implements the key recommendation of the Government-commissioned Tutty report that was published in 2018. Many people will be surprised to learn that providers of credit are not yet regulated by the Central Bank. This Bill will require providers of hire purchase and PCP credit lines to become regulated entities. That will give the Central Bank the power to apply the consumer protection code to such firms, particularly the part that requires firms to assess the suitability of the product for the consumer and the ability of the borrower to repay the debt over the duration of the credit agreement. I have, through my office, assisted many people who are dealing with legacy debt. One of the recurring problems is constituents who have been lured in by six-month interest-free credit deals, only to find themselves locked into a four-year high-interest arrangement because companies have made it as difficult as possible to repay the balloon payment at the end of the arrangement. This has to stop.

In addition, the Bill will require providers of indirect credit to become entities regulated by the Central Bank. Indirect credit is so called because the lender provides credit to the borrower by paying a retailer for the purchase of a good. This will significantly improve the level of protection available to the consumers of such agreements. It will also see the existing interest rate cap on credit and hire purchase agreements extended to all entities under the scope of the Consumer Credit Act 1995 through some amendments to that Act. As Deputy Martin Kenny said, moneylenders do not fall within its remit. We must have urgent progress on the Consumer Rights Bill 2021. This is a long overdue Bill to consolidate and modernise consumer protection legislation. The need for that Bill has never been greater.

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