Gerald Nash (Louth, Labour)
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Question 61: To ask the Minister for Finance his plans to introduce a maximum level of interest which can be charged by licensed moneylenders in view of the fact that some licensed moneylenders are currently and legally charging rates of up to 100%. [16013/11]

Michael Noonan (Limerick City, Fine Gael)
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At present, 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 Central Bank.

Consumers, who avail of loans from moneylenders licensed under the Act, 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. They must provide the following information to their clients:

the method of repayment of the loan, and

details of all fees, related interest payments, charges and the cost per €100 borrowed.

They must also indicate prominently the high-cost nature of the loan on all loan documentation where the APR is 23% or higher. This disclosure must take the following form: Warning:This is a high-cost loan

These requirements are set out in the Central Bank's Consumer Protection Code for Licensed Moneylenders.

I would encourage consumers to shop around and consider all the different sources of loans that are available to them. 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 may avail of the services of the Money Advice and Budgeting Service (MABS). MABS works with people in order to assist them with financial planning and budgeting for the future. It is a national, free, confidential and independent service.