Results 7,961-7,980 of 36,188 for speaker:Pearse Doherty

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

Pearse Doherty: This section amends the interpretation section of the original 1995 Act and substitutes a number of the terms to differentiate between licensed and unlicensed moneylenders, but no changes have been made to the advertising provisions under the Consumer Credit Act, despite the fact that during the engagement with stakeholders and public consultation, there were calls for greater regulation of...

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

Pearse Doherty: Will there be any prohibition on moneylenders doing leaflet drops in the run-up to Christmas, which target vulnerable households with high-cost interest loans? Regardless of the fact the moneylenders will have to disclose "We are fleecing you", there remains the fact they are targeting people during that period.

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

Pearse Doherty: What is the Minister of State's view on that? It is that type of advertisement. We are aware advertising takes place in different ways now than it did in the past. That kind of leaflet drop is still a part of moneylenders' operational procedures. They are not going to drop leaflets out in Donnybrook. They target social housing estates and they target areas they believe are lower income...

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

Pearse Doherty: To tease that out, what are the criteria a moneylender must follow on ability to pay? Would they include the track record of a customer paying a previous loan or would they be based on household income, such as the proportion of income, as applied by banks?

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

Pearse Doherty: That is fine. Taking it one step further, what is the default rate across the industry when it comes to moneylending loans?

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

Pearse Doherty: Okay. I do not expect the Minister of State to know it. Would he accept it is reasonably low?

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

Pearse Doherty: The default rate is low for a number of reasons. These include the relationship with the collector and the evidence indicates individuals will prioritise moneylender loans above other types of loan because it is the last opportunity for them to access credit.

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

Pearse Doherty: Yes. We have had much pre-legislative scrutiny of this, including examination of my legislation, and the fear of illegal moneylenders is not seen as a reason to reduce interest rates. The point I am making is that moneylenders having to calculate ability to pay is good. I welcome it. That misses the real point, however, as the default rate with moneylenders is very small anyway. People...

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

Pearse Doherty: With respect, the Minister of State is missing the point.

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

Pearse Doherty: With respect, the discussion of the section may lead to amendments on Report Stage. The Minister of State is really missing the point here. We recognise that a loan cannot be rolled over and a person must make a fresh application. Taking out a new application will not be a problem for many of these families, who will have already met the terms of the previous 12-month loan. They may have...

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

Pearse Doherty: No. I spoke about a one-year loan-----

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

Pearse Doherty: Of course it will be a new loan. That the Minister of State shrugs his shoulders at that idea means he fails to understand exactly what is happening with moneylenders. This is the problem. There are families out there at the minute who are borrowing €1,000 and are paying it back. They pay the €560 interest. At the moment they are rolling that over and will not be allowed to...

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

Pearse Doherty: Can the Central Bank revoke a licence midstream?

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

Pearse Doherty: I thank the Minister of State for his reply.

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

Pearse Doherty: Are we dealing with amendment No. 5?

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

Pearse Doherty: On section 5, I want it noted that I am uncomfortable with the extension of the five-year period. While the Central Bank, through the Minister of State’s amendment which I welcome, is allowed to revoke or refuse a licence midstream, I encourage it to apply this provision where this has happened. I have made the point before that I accompanied whistleblowers to the Central Bank which...

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

Pearse Doherty: I move amendment No. 5: In page 8, to delete lines 34 and 35, and in page 9, to delete lines 1 to 15 and substitute the following: “(2) (a) The Minister shall prescribe in respect of a loan (other than a running account) under a high cost credit agreement— (i) the maximum rate of simple interest chargeable per week (being a rate less than or equal to 0.75 per...

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

Pearse Doherty: We went through this before but I ask the Minister of State to clarify his proposal. He spoke about the 1% per week rate. Under the Government's proposal, how much interest would a customer pay on a €1,000 loan over a period of 12 months?

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

Pearse Doherty: Four hundred and eighty euro. How much lower is that than the current market for these loans?

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

Pearse Doherty: Provident is the biggest provider in the market-----