Lorraine Higgins (Labour) | Oireachtas source

I wish to raise an issue that is quite prevalent during the recession in Ireland; that is, the dependency of some families on moneylenders. Recently in the UK, one moneylender firm was ordered by the regulator there to refund £220 million in debts to 330,000 customers who took out loans that they clearly could not afford to repay. While the scale may be somewhat lower in Ireland, comparatively speaking, the issue remains the same - that is, that there are unscrupulous moneylenders operating in Ireland who lend money to people without knowing or caring whether they can afford to pay it back. Many of these lenders give out money without asking people about their personal finances and their income. Often, they give money to multiple applicants in one household, where the loans are far from affordable lending. There is a need to tighten the lending criteria for customers of moneylenders, because a lack of restrictions for lenders is setting a debt trap for borrowers. Checking whether a person can afford to repay a loan should be at the heart of any application that is submitted. If a moneylender has failed to satisfy the basic responsibility, the Central Bank should take action. That is why I believe it is important that we should clean up this whole industry and the reason I am calling on the Minister for Finance to come to the House to discuss the issue and what steps he will take to address the reckless lending that is taking place.