Pearse Doherty (Donegal, Sinn Fein)
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147. To ask the Minister for Finance if he has conducted a detailed study of the size of the motor finance market here; if so, the level of household exposure if there was to be a change in circumstances in the car market such as a change to residual values of contracts or increases in interest rates; the potential economic impact of such a change in the motor finance market; and if he will make a statement on the matter. [22111/17]

Michael Noonan (Limerick City, Fine Gael)
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To date, the focus of my attention in relation to personal credit has been on the mortgage market because this is the most significant in terms of its impact on the borrower and the broader economy. I, as Minister for Finance, have not conducted a detailed study of the size of the motor finance market here. In addition, I understand that neither the Central Bank nor the Competition and Consumer Protection Commission (CCPC) have published a report specifically on this issue. That said, I am not aware of any consumer protection issues in relation to the motor finance market.

I am taking the Deputy’s question, in the absence of detailed information, to refer to Personal Contract Plans (PCPs) or hire-purchase agreements. PCPs are in effect a type of hire-purchase agreement and my Department does not collate statistics on the number and value of such plans that are entered into.

The Consumer Credit Act, 1995, applies to the provision of hire-purchase agreements.  Both the Central Bank and the Competition and Consumer Protection Commission (CCPC) have certain functions and legal powers in relation to the regulation of hire-purchase agreements. 

While hire-purchase providers are not required to be authorised by the Central Bank, they are subject to a number of legislative and regulatory requirements supervised by the Central Bank and listed in Schedule 2 to the Central Bank Act 1942.  In addition, to the extent that an entity is a 'regulated financial service provider', the powers in the Central Bank (Supervision and Enforcement) Act 2013 and the administrative sanctions procedure will apply.

Finally, any intermediary who is arranging credit for a consumer is acting as a credit intermediary and an intermediary arranging such credit must seek authorisation from the CCPC to act as a credit intermediary. A list of authorised credit intermediaries is available on the CCPC website ().