Joe Costello (Dublin Central, Labour)
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Question 98: To ask the Minister for Finance the way he proposes to transpose the Consumer Credit Directive into domestic legislation; when he proposes to do so; if he proposes to include the discretion for credit unions contained in the Directive; and if he will make a statement on the matter. [25719/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Consumer Credit Directive establishes a harmonised legal framework in the European Union for the provision of consumer credit ranging from €200 up to €75,000. (It does not apply to mortgages). It replaces a 1987 Directive (87/102/EEC), which laid down minimum rules for consumer credit arrangements within the EU.

The Directive was transposed into domestic legislation by Statutory Instrument No. 281/2010 on 9th June, 2010 and came into operation on 11th June, 2010.

I believe that the Directive enhances the strong regulatory regime underpinning consumer protection, and as such, I have decided that credit unions should be subject to its full application.

However, following consultation with representatives of the Credit Union movement, I am aware that the credit unions will require some time to upgrade their systems and train staff, so that they can effect compliance with all the requirements of the Directive. Consequently, I have adopted the discretion allowed for under Article 2.5 applying limited provisions of the Directive to them until 11th December 2011, after which date, the full Directive will take effect.