Results 8,541-8,560 of 36,189 for speaker:Pearse Doherty

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: I understand that. Forgive me if I am wrong but I believe that when you enter an agreement to buy the jacket in Topshop, you are entering into a credit agreement not with Topshop but with Klarna. Therefore, the credit provider-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: When you buy the jacket for €100, as in the example I gave, and pay in instalments over a three-month period, you are not entering into an agreement with Topshop but with the credit provider. The credit provider is not providing credit to the shop. I agree 100% with the proposal but am concerned about the conditions under which the credit arrangement falls under the scope of the...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: We want to get to the same point. My only concern is the wording so I will go through this slowly. Let us forget about a shop so as not to mix things up. Let us forget about the scenario where the credit provider provides credit to the shop. Let us look at Klarna, which is the biggest operator here. Klarna provides credit to a customer to purchase an item from a shop. This amendment...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: Where is the credit provider unconditionally captured under this legislation? I ask because it is conditional in the amendment, which very clearly states "other than where such credit is granted". Let us say one goes into a corner shop for a loaf of bread and a pint of milk but one asks the shopkeeper to record the amount in a book or put it on tick or says one will pay for the items next...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: No. With respect, the Minister of State must look at the amendment that has been put forward in the context of section 3 of the original Act, and I do not have it in front of me, which specifies those that are captured under the Central Bank regulation and it has a number of exemptions, and exemption (e) refers to those who are exempt from the regulation and states: “(e) credit...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: I ask for that in the context of how the market is operating, particularly in Britain; Klarna is only here since November.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: I would like to know how this operates in Britain. There are numerous websites which show that it is not Klarna that advertises or invites. Klarna is neither inviting nor advertising and, therefore, it is not included under this section. It is the shop that invites and advertises and the shop websites provide a window or gateway to Klarna but it is not Klarna that advertises its products.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: There is a deal between Klarna and the merchant.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: It is the business that invites people to access the Klarna service, not Klarna. When one purchases items online in Topshop or whatever, it is Topshop that advertises that people can buy through Klarna. It is not Klarna itself..

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: No.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: No. The text of this amendment states that "a person", which is Klarna in this case, "has invited, by way of advertisement, consumers to avail of such credit”. I am saying that it is the retail outlets that actually advertise and invite.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: It is just to make sure that there is no scope for somebody to say that they did not invite or advertise their service.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: I know the purpose of the amendment, which is exactly as the Minister of State has set out. My point here that we must ensure that the language and text of the amendment is tight enough to ensure that regardless of which entity - the credit provider or the shop - is inviting or advertising, the credit provider is captured under this amendment. That is the concern.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: With respect to the Minister of State, we know all of that. The problem is that if Klarna does not advertise its services, it does not fall under the scope of the Central Bank regulation, under which the Government and all of us want to bring it. It is conditional on advertising and inviting the person to take up the credit. I am going to leave it at this point. A note would be helpful to...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: I agree with the amendment; I just want to make sure it is tight enough. I think it is a very positive amendment.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: I am definitely not doing it through Klarna. I will discuss that later on. It is not just about what the Minister of State said. There are other issues with Klarna, but we will come to that.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: This is related. Section 11 ensures that the APR provisions apply to credit and hire purchase agreements. The Central Bank may make regulations to amend the method of calculation. Later, we will deal with the fact that APR is capped at 23% for these services, which I support. At least it is being brought into line with other services. Going back to the example of Klarna, it offers...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: So, there is no limit on interest that can be charged when a customer misses a payment?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021: Committee Stage (23 Feb 2022)

Pearse Doherty: That takes me to an amendment that I will move later. This is a major issue in terms of how people are going to access credit and the heavy penalties that will not be captured under this legislation, which is consumer protection legislation. It is good that we are regulating them, but there is a big issue on which I have an amendment later that I ask the Minister of State to support. I...