Barry Cowen (Laois-Offaly, Fianna Fail)
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Question 117: To ask the Minister for Finance if legislation will be required to implement the commitment in the programme for Government to regulate moneylenders. [18290/11]

Michael Noonan (Limerick City, Fine Gael)
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Persons operating as unlicensed moneylenders are in breach of the law. Any evidence of their activities should be brought to the attention of An Garda Siochana. If legislation is required to deal with unlicensed moneylenders, that will be a matter, in the first instance, for my colleague, the Minister for Justice and Equality. I will consider any subsequent follow-up regulatory requirements, so as to implement, in the full, the commitment in the Programme for Government. The Deputy may wish to know that there is already a comprehensive regulatory licensing system in place for moneylenders. Moneylenders have to apply to the Central Bank annually to have their licenses renewed. Section 93 of the Consumer Credit Act, 1995 (as amended) sets out the Central Bank's powers in relation to the grant or refusal of a moneylender's license. The appropriate moneylending application form (new or renewal) must be completed and returned to the Central Bank with a number of items, for review and consideration.

In addition to the licensing system, the Central Bank has in place a Consumer Protection Code for Licensed Moneylenders (the Code). The Central Bank has power to impose sanctions on moneylenders for a contravention of the Code. The Code sets out General Principles with which a moneylender must comply. For example, a moneylender must act honestly and professionally, with due skill, care and diligence in the best interest of consumers. The Code also places requirements on moneylenders in relation to the provision of information to the consumer, preservation of a consumer's rights, knowing the consumer, suitability, unsolicited contact (cold calling), disclosure, errors, handling complaints, consumer records, unsolicited credit facilities, arrears and guarantees, debt collection and the contents and presentation of advertisements.

On 18 February 2011, the Central Bank published the results of a themed inspection of licensed moneylenders. The inspection showed a high level of compliance with the requirements of the Code among firms. Inspections were conducted in 11 of the 46 licensed moneylenders currently operating in Ireland. The inspections focused on whether consumers were being charged in accordance with the moneylenders' authorised APRs (Annual Percentage Rates) and costs of credit as set out in the moneylenders' licenses. It also examined whether firms had their licenses on display and, if they indicated the high-cost nature of loans on loan documentation issued to consumers, as required by the Code. Overall the inspections found a high level of compliance with the requirements and that consumers were been charged in accordance with the moneylenders' authorised APRs and costs of credit. In addition, firms had their licenses on display and indicated the high-cost nature of loans on loan documentation issued to consumers.

I would expect that, in future, the Annual Regulatory Performance Statement of the Central Bank will refer to the regulation of moneylenders