Terence Flanagan (Dublin North East, Fine Gael)
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Question 201: To ask the Minister for Finance the regulations in place for money lending agencies regarding interest rates; if there is a maximum interest rate set for lending agencies or are they free to charge any interest rate; and if he will make a statement on the matter. [29518/12]

Michael Noonan (Limerick City, Fine Gael)
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Moneylenders are covered by a range of provisions under the Consumer Credit Act 1995, including the annual licensing process by the Central Bank and the register of licensed moneylenders as detailed on the Central Bank's website, www.centralbank.ie. The annual percentage rate (APR) allowable under each moneylending licence is also available on the website. While there is no maximum rate of interest set out in legislation, under section 93 (10) (g) of the Consumer Credit Act, the Central Bank may refuse to grant a moneylender's licence if, in the opinion of the Bank, the cost of the credit sought by the moneylender is excessive or any of the terms or conditions attaching to it are unfair.

The Central Bank's Consumer Protection Code for Licensed Moneylenders, published in 2009, affords certain protections to client of moneylenders. Under the Code, a moneylender must, prior to entering into an agreement with a client:

- disclose all the fees, costs and interest charged in a clear manner and

- 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."