Ruairi Quinn (Dublin South East, Labour)
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Question 189: To ask the Tánaiste and Minister for Finance if his attention has been drawn to the recently published wish of the Financial Regulator to monitor and regulate lenders in the sub-prime market; and if he will make a statement on the matter. [20397/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am aware of the Financial Regulator's concerns that some lending activities (including those of some sub-prime lenders) fall outside the scope of the Consumer Protection Code and therefore some borrowers do not benefit from the additional safeguards which that Code provides. I have already indicated my intention to bring forward legislation to ensure that all consumer lending can be brought within the ambit of the Code.

I have initiated consultation with interested parties on proposals which my Department has developed in consultation with the Financial Regulator. A consultation paper setting out these proposals has been circulated to interested parties and is published on the Department's website site. The object of these proposals is to establish a regulatory regime for non-deposit taking lenders which would enable application of the Code to the relevant activities of firms in that the sector and provide also for the supervisory regime required under the EU 3rd Money Laundering Directive. The paper can be found on the Department of Finance website at the link below: http://www.finance.gov.ie/viewdoc.asp?DocID=5016

In view of the priority of addressing the consumer protection aspects of this issue, I expect that the necessary legislation can be dealt with in the Autumn Oireachtas Session.

Ruairi Quinn (Dublin South East, Labour)
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Question 190: To ask the Tánaiste and Minister for Finance if his attention has been drawn to the finding of the Financial Regulator's recent report on licensed money lenders where there are charges of as much as 180% APR; if he shares the view expressed by the Financial Regulator that these are socially beneficial companies; and if he will make a statement on the matter. [20398/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am aware of the Financial Regulator's recently published review of the licensed moneylending industry. The purpose of this 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 not my function or that of the Financial Regulator to endorse any type of credit provider as being socially beneficial. Responsible use of credit clearly can have advantages for consumers in terms of their lifestyles but the decisions can only be made on an individual basis in the light of the consumer's needs and means. The Financial Regulator recommends that consumers take on the right type of credit for the right purpose.

The Financial Regulator provides information about the different forms of credit available to consumers, including credit cards, overdrafts, hire purchase, personal loans and money lending. The Financial Regulator also recommends a number of steps that borrowers should take including shopping around for the cheapest loan, reading all loan agreements, reviewing their debts from time to time and not taking on more debt than they can afford. Borrowers should immediately get in touch with the lender if they have any difficulty in meeting repayments, or contact their local MABS centre.

I strongly endorse these recommendations. In particular, I would urge all consumers to shop around for credit, to examine the scope to borrow from community based lenders such as credit unions, and to avail of the more detailed information which is available through the Financial Regulator's publications, help-line (Lo call 1890 77 77 77) and website: http://www.itsyourmoney.ie.