Pat Casey (Fianna Fail) | Oireachtas source

I welcome the Minister of State to the House. If it were ever timely to bring in an item of legislation, that is certainly the case with regard to this Bill given many people will, clearly, face significant challenges in the near future. Fianna Fáil welcomes the Bill, the main purpose of which is to restrict the total cost of credit on moneylending loans, probably as a result of the report on moneylending policy proposals. The report examined the moneylending industry in Ireland and assessed the potential impacts of the introduction of an interest rate cap along with other supporting policy.It provides an overview of the current regulatory framework for licensed moneylenders and an analysis of the different credit options, and describes key characteristics of each of the moneylending markets.

In May 2019, the Department of Finance launched a public consultation process to gather the views of stakeholders on whether the Government should introduce a statutory interest rate cap on licensed moneylenders in Ireland, along with other regulatory matters. The main focus of the consultation was the question of interest rate caps. Respondents were asked, if an interest rate cap was introduced, which of four different models they were presented with would be the most beneficial and transparent for all consumers. The majority of submissions received were in favour of the introduction of an interest rate cap. This is what the Bill does. It will restrict interest rates by providing the Minister for Finance with the powers to make the regulations setting the maximum interest rates at which moneylending can be provided and prohibit moneylenders from charging for home collection services.

The Bill will reduce the cost of credit for customers of moneylenders. It also introduces a range of measures to reform and modernise the moneylending sectors. These measures will provide better protection for consumers and will streamline the licensing process for providers. The Bill will also contain a range of measures to modernise and streamline the sector, including allowing prepayment books to be maintained online.

As I said, this legislation follows a comprehensive review of the moneylending sector undertaken by the Department of Finance. The proposals take into account the submissions received during that public consultation process held by the Department in respect of these issues. Fianna Fáil will support this vital legislation as it progresses through the House.