Seán Haughey (Dublin North Central, Fianna Fail)

I am taking this Adjournment matter on behalf of the Minister for Justice and Law Reform. I thank the Senator for raising this issue which is clearly one of concern to him and, I am sure, all other Members of the House.

Responsibility for legislation on the regulation of moneylending and the prohibition of illegal moneylending lies with the Ministers for Finance and Enterprise, Trade and Innovation. Comprehensive legislation targeting the illegal lending of money has been on the Statute Book for some time, and has been strengthened in recent years. Licensed moneylenders operate under the regulatory control of the Financial Regulator who can impose administrative sanctions against moneylenders licensed by it for prescribed contraventions of legislation or regulatory rules.

The focus of this debate is illegal moneylending which is addressed by section 98 of the Consumer Credit Act 1995 which prohibits any person from engaging in the business of moneylending without a licence. Acting as an agent of an unlicensed moneylender is also prohibited. A member of the Garda Síochána has considerable powers under the Act where he or she has reasonable cause to suspect that a person is engaging in the business of unlicensed moneylending. The member may, without warrant, stop, question and search that person - if need be, by force - and remove from him or her any documents or money which the member reasonably believes may be in his or her possession for the purpose of moneylending. It is an offence to obstruct or interfere with a member of the Garda in using such powers. It is also an offence to give a garda false or misleading information or fail to comply with a request made by a garda in using these powers. The primary offence of engaging in unlicensed moneylending is indictable. It is noteworthy that legislation introduced by the Department of Enterprise, Trade and Innovation, the Investment Funds, Companies And Miscellaneous Provisions Act 2005, increased the penalty for this offence to a fine not exceeding €100,000, imprisonment for a term not exceeding five years, or both.

The Minister shares the Senator's concern for those who, because of financial and other pressures, fall victim to unscrupulous individuals who prey on their fellow citizens. The House will agree that the powers granted to the Garda to address the problem and the penalties available to the Judiciary in this regard are considerable. The Garda achieves its greatest successes when it enjoys the support and assistance of the community. If people have information on the activities of illegal moneylenders in their communities, the Minister urges them to let the Garda know in order that it can investigate and prosecute these criminals. As citizens, it is incumbent on all of us to play our part in combating crime. The Minister thinks it is important that we reflect on the positive steps which those who are under financial pressure can be advised to take to avoid falling into the traps of money lenders. The Money Advice and Budgeting Service is doing excellent work to advise individuals and families under pressure on how best they can manage their debts. It can advise people on how to reach accommodations with credit institutions and avail of the exceptional needs assistance available from community welfare officers.

I thank the Senator for raising this matter and making a number of suggestions, particularly in relation to the need for new legislation. I will bring his proposals to the attention of the Minister.