Seán Sherlock (Cork East, Labour)
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Question 55: To ask the Minister for Finance if his attention has been drawn to the report on the Licensed Moneylending Industry, in March 2007, by the Financial Regulator; if his further attention has been drawn to the fact that licensed moneylenders charge APRS ranging from 10.2% to 188.5%; and if he will make a statement on the matter. [24691/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Moneylenders are covered by a range of provisions under the Consumer Credit Act, 1995 (the Act) including the annual licensing process and the register of licensed moneylenders system as administered by the Financial Regulator.

Consumers who avail of loans from moneylenders licensed under the Act (moneylenders) are entitled to a considerable amount of information in relation to such loans. Moneylenders are required to assist consumers to understand the products on offer. This assistance has to include the method of repayment, all related interest payments, charges and the cost per €100 borrowed. Also the moneylenders are required to:- · disclose all the fees, costs and interest in a clear manner, and

· prominently indicate the high-cost nature of the loan on all loan documentation where the APR is 23% or higher.

These requirements are set out in the Financial Regulator's "Consumer Protection Code for Licensed Moneylenders". This Code came into full effect on 30 September 2009.

In his question, the Deputy refers to the Financial Regulator's report on the Licensed Money- lending Industry which was published in March 2007. That Report concluded that the introduction of an interest rate ceiling for moneylenders may not achieve the objectives of lowering the cost of credit for consumers. Other research findings included:-

· Customers of licensed moneylenders generally have a positive impression of their moneylender

· The significant majority of customers do not have difficulties making repayments to their moneylender.

· Customers mainly borrow from a moneylender because it is convenient, available, out of tradition or because of an established relationship with the moneylender.

I would encourage consumers to shop around and consider all the difference sources of loans that are available to them including credit unions. I would also encourage them to avail of the personal finance information that is available from the National Consumer Agency. This information can be found on the website www.itsyourmoney.ie. In addition, to the information provided on this website people who are in debt or in danger of getting into debt can avail of the services of the Money Advice and Budgeting Service (MABS). MABS works with people in order to assist them with their financial planning and budgeting for the future. It is a national, free, confidential and independent service for people.