Fintan Warfield (Sinn Fein) | Oireachtas source

I move amendment No. 1:

In page 9, to delete lines 29 to 35, and in page 10, to delete lines 1 to 10 and substitute the following: “(2) (a) The Minister shall prescribe in respect of a loan (other than a running account) under a high cost credit agreement—

(i) the maximum rate of simple interest chargeable per week (being a rate less than or equal to 0.75 per cent), and

(ii) the maximum rate of simple interest chargeable per year (being a rate less than or equal to 36 per cent).

(b) A maximum rate of interest prescribed under this subsection shall apply to a high cost credit agreement entered into after the date on which the regulations, by which the rate is prescribed, come into operation and for a period of no longer than three years.

(3) (a) The Minister shall prescribe in respect of a loan (other than a running account) under a high cost credit agreement—

(i) the maximum rate of simple interest chargeable per week (being a rate less than or equal to 0.35 per cent), and

(ii) the maximum rate of simple interest chargeable per year (being a rate less than or equal to 18 per cent).

(b) A maximum rate of interest prescribed under this subsection shall apply to a high cost credit agreement entered into no longer than three years after the date on which regulations, by which the rate is prescribed, come into operation.

(3A) (a) The Minister shall prescribe in respect of a running account under a high cost credit agreement, the maximum rate of nominal monthly interest chargeable on an outstanding balance (being a rate less than or equal to 1.92 per cent).

(b) A maximum rate of interest prescribed under this section shall apply to a high cost credit agreement entered into after the date on which the regulations, by which the rate is prescribed, come into operation.”.

I welcome the Minister of State to the House. I am speaking on this amendment on behalf of Senator Gavan. Deputy Doherty introduced legislation in 2018 to cap the levels of interest that can be charged and Sinn Féin has campaigned for many years to have the law changed. We continue to do that today. Some of the ultra-high interest rates that moneylenders are charging are absolutely unethical and immoral, and permitting them to do so is unethical. It traps vulnerable borrowers into vicious cycles of debt. That is scandalous and it can be legislated against, which is why we have put forward this amendment, the only proposed amendment, to the Consumer Credit (Amendment) Bill.

I invite the Minister of State to give his response before I go any further. I hope the Government will support the amendment and take it on board.