Written answers

Thursday, 17 July 2014

Department of Finance

Licensed Moneylenders

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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104. To ask the Minister for Finance the number of registered moneylenders in the State in each year since 2010; his views on the existing legislative protection for consumers availing of the services of moneylenders; and if he will make a statement on the matter. [32448/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The total number of licensed moneylenders in the State at the end of each year is as follows:

2010 - 46

2011 - 48

2012 - 44

2013-  40

The total number as at 15 July 2014 is 41.

Licensed moneylenders must comply with (among others) the:

- The Central Bank's Consumer Protection Code for Licensed Moneylenders (the Code),

- European Communities (Consumer Credit Agreements) Regulations 2010, as amended, and

- Consumer Credit Act, 1995.

Compliance with regulatory and legislative requirements is monitored by the Central Bank on an ongoing basis through a robust annual licensing process, ongoing supervision, themed and institution specific inspections, mystery shopping, consumer intelligence and monitoring of complaints.  Failure to adhere to the provisions may lead to proceedings under the Administrative Sanctions Procedures, which enable the Central Bank to sanction and to fine regulated entities for breaches of regulatory requirements. Licensed moneylenders are also subject to the Central Bank's fitness and probity regime.

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, 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.

In order to further inform the Central Bank's supervisory approach - in addition to its inspection work and on-going monitoring activities - the Bank published a report on the moneylending sector in Ireland in November 2013. A copy of the report is available on the Central Bank's website.

Overall, the research shows that there are some positive findings in relation to how licensed moneylenders are treating their customers and also in the increasing level of awareness of the costs of such loans. However, the Central Bank will continue to monitor this sector closely and to take action, where necessary, to protect borrowers' interests.

A distinction should be made between licensed and unlicensed moneylenders. The Central Bank has no power or regulatory role in regard to unlicensed moneylenders and reports suspected cases of unauthorised moneylending activity to the Garda Síochána for further investigation.

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