Darragh O'Brien (Fianna Fail) | Oireachtas source

I support the constructive legislation put together by my colleague, Senator Marc MacSharry. It is not the first time he has done so. He has outlined many of the reasons the Bill should be accepted. As my colleague stated, it is part of a solution and not the be all and end all. It will not solve everything. One of the biggest issues with regard to illegal money lending is with regard to the tactics used by some moneylenders to threaten people into paying exorbitant rates of interest. They use physical assault, seize goods, break into property and verbally threaten.

The problem is increasing in these very straitened times. We are in the middle of a very deep recession and people cannot obtain finance from banks or credit unions, social welfare payments have been cut drastically and the Government has abolished payments such as communion and confirmation grants. Many vulnerable and poor families who do not have resources fall into the arms of moneylenders when it comes to communion and confirmation. The Bill would provide protection for someone who made a complaint to the Garda. At the very least even if there was not enough evidence to convict someone a judge could put in place a barring order to prevent an individual or his or her agents from threatening or making contact with the person who owes him or her money. The Bill is part of the solution and the Government should accept it on Second Stage and allow amendment should it be required.

We intend to bring forward further legislation on legal moneylenders. We do not have a maximum APR set by the Central Bank. One company in particular, which I will not mention, offers a €500 loan repayable over 52 weeks at a payment rate of €15 a week. Somebody who may not be too financially competent might think this is reasonable, but it is an APR of approximately 160%. People prey on the vulnerable and desperate and those who are not up to speed on finance.

At least those moneylenders are legal, but illegal moneylending generally emanates from organised crime, dissident groups and drug dealers, people who are dangerous in their own right. Senator MacSharry's Bill would provide protection and increase the maximum penalty to 14 years in prison. Under it, a judge could instruct an individual or his or her agents not to make further contact with a person. This is a sensible approach and I am interested in the Minister's response.

I would be also interested to know whether his Department or the Department of Finance plans to tackle moneylending in general. A part of the legislation that we intend to introduce will deal with the advertising of legal moneylenders. They run promotions such as no credit checks, guaranteed loans, borrow up to €500 instantly, etc. These adverts are prevalent on British television and are creeping into this country at an alarming rate. Were this Bill accepted, it would form part of the solution and lay down a marker that the Government was willing to do something about the issue.

This is not an easy matter and one size does not fit all. People's social welfare payments have been cut and they cannot access finance through normal channels because their banks will not lend to them if their credit cards are maxed out. Generally, it is family events such as communions, confirmations and weddings that prompt them to try to get their hands on €500. They do not realise how much they will repay. More importantly, they do not have the protection of the courts. As Senator MacSharry stated, there have been no convictions under the current legislation. This Bill would make it easier for the courts to set down a barring order. It might be a start to the process. I hope the Minister sees fit to allow the Bill to pass Second Stage and to accept it in the manner in which it has been proposed. It is constructive, well thought out legislation.