Róisín Shortall (Dublin North West, Labour)
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Question 151: To ask the Minister for Finance when the proposed changes to the regulation of money lenders will be introduced by the Financial Services Regulatory Authority; the powers the authority will have to deal with moneylenders that do not comply with the new regulations; and if he will make a statement on the matter. [3884/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Currently licensed moneylenders are covered by a range of provisions under the Consumer Credit Act 1995 which include the following:

An annual application process;

Requirements relating to the content of moneylending agreements and repayment books which include information relating to the Annual Percentage Rate (APR), cost of credit and collection charges;

Requirements regarding matters that arise during the currency of the agreements e.g. certain collection times, ban on top up loans, prohibition on charges for expenses on loans by moneylenders, prohibition on selling goods while making an advancement to consumers, on increased charges for credit on default etc.; and

Requirements regarding matters arising on default and termination, e.g. the consumer is entitled to a reduction in cost of credit if they redeem their loan early.

Licensed moneylenders are also subject to an Interim Code of Practice, which sets out a number of general principles that must be complied with such as acting fairly, with due skill and care, with appropriate resources and making adequate disclosure of all relevant information.

The Financial Regulator recently conducted a review of the licensed moneylending industry in the Republic of Ireland. The purpose of the review was to gain a greater understanding of the industry and to determine whether it is appropriate, necessary and reasonable to change current regulatory policies. It is intended that this review will be published in the near future.