Results 881-900 of 34,618 for speaker:Seán Fleming

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: Section 2 provides for the terms "moneylender", "moneylending", "moneylender’s licence" and "moneylending agreement" to be replaced by the term "high cost credit provider", "high cost credit", "high cost credit provider's licence" and "high cost credit agreement", respectively. The purpose of this change in language is differentiate licensed providers more clearly from unlicensed...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: There is no specific item in the legislation that deals with a period such as coming up to First Communion, Christmas or any other holiday period. There is no specific section in the legislation that prohibits the distribution of advertisements in a specific time period. When one can advertise is not confined to certain days of the year. As I have said, the interest rate must be clearly...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: I understand. We were all in the same space on this in protecting vulnerable customers at a vulnerable period in the year just coming up to Christmas. The Central Bank brought in the high-cost warning requirements, which came into effect on 1 September 2020, and the remainder of those regulations came into effect on 1 January 2021. Some of those have already come into effect since the...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: I understand the point made about the people we are dealing with. There is an item in the legislation that is new and is not in existing legislation. For the first time we will have legislation whereby the loans can only extend for 12 months. Up to now there was not a 12-month limit and loans could roll over very simply. It did not have to be a new loan. Under this legislation, the loan...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: It would be the same requirement as for any commercial or personal loan. That did not apply up to now in this sector. The lenders will now have to meet the same consumer credit loan protections and regulations that apply to all other lenders authorised by the Central Bank. That was not the case up to now. This will include income and whether a person has the ability to repay the loan. It...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: I do not know.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: I would because these are small loans. The average loan is in the bracket of between €700 and €800. They are not loans of thousands of euro. They are quite small.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: It is the second to last, as the illegal lenders are out there and we want to keep people away from them.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: That is a very fair description of where we are, prior to the enactment of this legislation. It is a very fair assessment of what happens in many cases. It is why, for the first time, we are introducing a limit of 12 months on any loan. In the past, loans would just been rolled over repeatedly but now a loan will have to be brought to a conclusion at the end of the 12-month period. There...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: Okay. The essence of the legislation is that it would be an offence to issue a four-year loan. It would be a specifically stated offence.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: The Deputy quoted how much somebody would pay on a four-year loan on the basis of an initial €1,000-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: I listened carefully and I think I understood the Deputy's point. Those people would have repaid approximately €500 in interest and the capital. If somebody gets a loan and repays it within the specified period, including interest, and wants to start again, they are allowed to do it. Most people do it with car loans etc. When the loan is repaid, including capital and interest, they...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: The net point here is that this legislation does not regulate advertising. I take and understand the point the Deputy is making and I can confirm that this legislation is not about advertising of loans and that is not covered in this legislation.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: There is a summary fine of €3,000 and, on indictment, that will be €100,000. It would be a matter for An Garda Síochána to take up breaches of this legislation.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: Yes, it has always been able to do that if people are not complying with the conditions of their licence at any stage. The Deputy knows that we are going to extend the period of the licence from one to five years. The Central Bank is always free to suspend the licence, including in this instance.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: I move amendment No. 1: In page 6, between lines 27 and 28, to insert the following: “Amendment of section 28A of Act of 1995 4.Section 28A of the Act of 1995 is amended, in subsection (1), by the substitution of “high cost credit agreement” for “moneylending agreement”.”. The proposed new section 4 of the Bill adds a definition for a...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: I moved too quickly, sorry.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Consumer Credit (Amendment) Bill 2022: Committee Stage (11 May 2022)

Seán Fleming: I move amendment No. 3: In page 7, to delete line 27.