Mary Upton (Dublin South Central, Labour)
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Question 20: To ask the Minister for Finance his views on stronger legislation against predatory lending, particularly so called sub-prime lending; and if he will make a statement on the matter. [45371/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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At the outset, I would point out to the Deputy that the Government has taken steps last October under Section 19 of the Markets in Financial Instruments and Miscellaneous Provisions Act, 2007, which amended Part V of the Central Bank Act, 1997, to provide for an appropriate system of authorisation and supervision by the Financial Regulator of retail credit firms engaged in specialist or so-called sub-prime lending and home reversion providers not previously subject to financial regulation in respect of lending activities. The primary purpose of this amendment was to extend to customers of these firms the benefit of the consumer protections provided for in the Financial Regulator's Consumer Protection Code. This regulatory regime is in place since 1 February 2008.

Consumer credit, including sub-prime lending, is also regulated in Ireland 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 satisfied that the legislative framework now in place provides sufficient powers to the Financial Regulator to discharge its statutory mandate in relation to safeguarding the interests of all consumers.