Maria Byrne (Fine Gael) | Oireachtas source

I thank the Minister of State for coming to the House to discuss this important Bill. I realise its significance in protecting the consumer. Like Senator Casey, Fine Gael will support this Bill. The primary purpose of the Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021 is to provide that any firm that offers credit under buy now, pay later arrangements, hire purchase contract plans or consumer hire agreements, and other relevant persons, will, unless already subject to Central Bank of Ireland regulation, require to be authorised as a retail credit firm by the Central Bank. This is important. I pay tribute to Mr. Michael Tutty and all the work that he put into it. He brought forward his recommendations. The legislation is about protecting the consumer and bringing the providers of indirect credit within the authorisation and regulatory remit of the Central Bank. It is so-called because the lender indirectly provides credit to the borrower by paying a retailer on behalf of a consumer for the purchase of a good or service, often as part of a buy now, pay later offer.

The Bill brings credit, hire purchase and consumer hire agreements within the authorisation and regulatory remit of the Central Bank, which has a key role to play. It does this by extending the existing authorisation scope of credit servicing firms to include those additional types of financial agreements. It widens the current definition of credit. We are all used to hearing about people looking for credit. The definition will include retail credit and credit servicing firms, which applies to credit in the form of cash loans only. It will include credit in the form of a deferred payment, cash loan or other similar financial accommodations. It extends an existing cost of credit gap of up to 23% APR on credit provided to consumers by certain firms to all entities which provide credit or hire purchase agreements, other than moneylending agreements or credit unions, both of which have their own regulatory requirements.

The Bill provides for measures mainly by amending the Central Bank Act 1997. It currently provides for the authorisation of,inter alia, retail credit and credit servicing firms, but changes will also be made to certain other relevant legislation, including the Consumer Credit Act. Overall, this is beneficial for the consumer. It means there is regulation and accountability, which is most welcome. I thank the Minister of State and look forward to working with him.