Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 134: To ask the Tánaiste and Minister for Finance when, in view of the evidence of increased activity by sub prime lenders, legislative changes in respect of this type of predatory lending will be introduced in order to give consumers greater protection. [17251/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Sub-prime lenders are regulated in Ireland in respect of their lending activities under the Consumer Credit Act 1995. The Act makes detailed provision for the form and content of loan agreements and for advertising of consumer credit. The Financial Regulator has powers of investigation, review and enforcement in relation to matters covered by the Act. Consumer complaints about the performance of creditors with respect to their obligations under the Act also fall within the remit of the Financial Services Ombudsman. The Consumer Protection Act 2007 established the National Consumer Agency with an extensive remit including enforcement powers in relation to unfair commercial practices and unfair terms in consumer contracts. In the case of regulated financial service providers these powers may be exercised by the Financial Regulator.

I am aware that some lending activities (including those of some non-deposit taking lenders) fall outside the scope of the Financial Regulator's statutory Consumer Protection Code (CPC) and therefore borrowers do not benefit from the additional safeguards which the Code provides. The Third Money Laundering Directive, which is due to be transposed into Irish law by 15 December 2007, requires that financial institutions, as defined in the Directive, be subject to enhanced supervision. All non-deposit taking lenders and mortgage providers fall under the terms of this Directive and the application of the CPC where it does not currently apply is being considered in this context.