Results 6,381-6,400 of 16,492 for speaker:Ciarán Lynch

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: Some €200 million in loans are outstanding in that category.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: Mr. Sheridan mentioned that APR rates were at or could cap out at 200%. It is an astronomical figure. Ireland entered the troika bailout programme because we could not get money cheaply, namely, below 8.5%. The affordability level of these interest rates indicates a worrying return. Of the 360,000 loans, what percentage have been completed in full? Have almost all of them been repaid?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: What is the default rate in the market? Is it 10% or 20%?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: We can safely say that approximately 80% of people are servicing their loans. If one operates on the basis that risk in lending is determined by the interest rate and that 80% of loans are performing, why is the Central Bank allowing such a high interest rate to operate in the market?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: With an interest rate of 287%, surely one could not add more penalties.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: That leads me to my next question. According to the report, people are satisfied with the service, but I would like to know what question was asked. It is certainly easier to get a loan from a licensed moneylender than from a bank or credit union. With some moneylenders, one can almost get loans online. However, quality of service and access to money are separate matters. There is a...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: Did the Central Bank make any intervention in 2013?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: Did the Central Bank make an intervention in 2013?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: Mr. Sheridan must realise that I am extraordinarily tight with my own time and will be just as tight with members' time. If a question is put to Mr. Sheridan, will he please answer it first and then elaborate? Was an intervention made against a company's licence in 2013, 2012 or 2011? When was the last time?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: Was there an intervention regarding a company's existing interest rate that resulted in the rate's reduction?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: The Central Bank has not made an intervention that led to a reduction in interest rates.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: Firms can have the interest rates that they have been granted for a number of years until their licences come up for renewal, but at no time has the Central Bank made an intervention to reduce an interest rate that it had already granted. Am I correct in saying that?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: I want to be clear, as members will need to be certain about this matter when they are asking questions. Mr. Sheridan's section in the Central Bank sets the ceiling for the interest rates allowable for these companies. It is not set by legislation, but at Mr. Sheridan's desk.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: How does Mr. Sheridan justify a company charging an interest rate of 287%?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: I know, but the Central Bank can intervene to reduce them. Why is it tolerating an interest rate of 287%?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: I will revert to my question. Am I correct in believing that the Central Bank has set the maximum interest rate that can be charged for a loan regardless of the schedule? The maximum APR that can be applied in Ireland is 287%.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: More than 80% of the market is performing. Perhaps I am wrong, but the interest rate applied to a loan is based on risk - that is, whether the borrower will repay the money. As Ireland discovered in the international monetary markets before we entered the bailout programme, we could not get affordable money because the interest rate increased. That was 8.5%, but we are discussing 287%....

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: The Central Bank has never made a reduction on an existing licensed rate. That is what Mr. Sheridan stated.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: The profit margin in this area is so good that everybody will be seeking higher rates. It is the nature of business to want always to make more money. How much money would one of these companies make on a €1,000 loan at 287% over a four month period?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Ciarán Lynch: Mr. Sheridan in his opening statement said that there is much commentary and concern in regard to what is happening in the high street in Britain. Is the Irish market as currently structured attractive to such lenders? Can the Central Bank, under current regulations, facilitate interest rates of 5,000% plus, as is currently the case in Britain?