Jim Walsh (Fianna Fail) | Oireachtas source

The Bill is probably overdue. I commend Senator MacSharry, as everybody else who has spoken has done, on his initiative in this regard. In commending him, I would condemn the Minister for his failure to take this on board. This is a real issue, as everybody in the House, whether on the Government or the Opposition benches, will be aware. It is a terrible affliction on those who find themselves in this position. We have seen many robust and illegal methods used to extract repayment from borrowers. We are talking about borrowers who are the most vulnerable and disadvantaged in society. This Bill deserved the Government's support in this regard.

Senator MacSharry has identified this as a growing problem. While it concerns illegal moneylending, there are issues surrounding legal moneylenders as well which also need to come under focus. The Senator is seeking to ensure the punishment is commensurate with the seriousness of the offence and that there would a prohibition on those convicted of unlicensed moneylending from harassing those who have been their clients.

Senator MacSharry might well go beyond that. I would ask him to consider, because I am sure this Bill will return, perhaps in a different format, if it is voted down today, ensuring illegal moneylenders are aware that any contract they enter into would be regarded as being void by the State, in other words, an illegal moneylender would have no recourse to recovering his or her money legally and also there would be severe punishment for any strong-arm tactics to recover that money.

While I criticise the Minister for not dealing with this, it is fair to say that it is 40 years since RTE produced a programme on the issue. At that stage the scourge of illegal moneylending was refuted by Members in this House and led to an inquiry which substantiated what was going on.

The fact that nobody has been convicted of illegal moneylending over the past seven or eight years at a time of harsh economic circumstances for most of the population shows the legislation is inadequate and is certainly not being enforced by the Garda. In some instances, there is a reluctance among those who are caught up in this scenario to come forward and make a complaint because of the danger to which they feel themselves personally subjected. We have heard of cases here, and for that matter in Northern Ireland, of collateral such as pension books, post office books and benefits being removed from clients or their having to attend at certain locations to hand over either their social welfare or pensions to these moneylenders. The consequences for many have included not only threats but also physical assault and illegal seizure by moneylenders of the goods of borrowers. Sometimes lenders force their victims to carry out illegal activities and commit offences, purely in order that they may extricate themselves from their difficulties.

It is past time we got much tougher with people who take advantage of those who are in difficulties.

In my book, the reasons given by the Minister for not accepting this legislation do not stand up. Moreover, the State is also aware that details regarding licensed moneylenders, which can be found on the Central Bank website, show some of the charges made are staggering. I am told that in some instances, the annual percentage rate, APR, is as high as an incredible 287%. I suggest this Bill, which constitutes a start in the right direction, should at least be kept on the Order Paper. If the Minister believes it could be improved, by all means let him or others bring forward amendments to substantiate that. However, Members should avoid doing what they did two years ago, when efforts were made to deal with the position regarding bankruptcy and insolvency. They sat on the problem for a couple of years before legislation was passed, which actually gives all the cards to the banks. People who are in financial difficulties cannot now resolve them unless the banks acquiesce. Are Members stating those who are victims of moneylenders will be stuck in the same position, whereby they only will be able to extricate themselves from their difficulties if the moneylenders acquiesce? That is an appalling situation to allow to continue.