Michael McGrath (Cork South Central, Fianna Fail)
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102. To ask the Minister for Finance the number of personal contract plan providers, PCPs, here; the number and value of PCPs currently in existence; the number and value of PCPs that are behind on their payments; and if he will make a statement on the matter. [53761/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Personal Contract Plans (PCP) are a form of Hire Purchase and both the Central Bank and the Competition and Consumer Protection Commission (CCPC) have certain functions and legal powers in relation to the provision of hire-purchase agreements.

The CCPC is responsible under the Consumer Credit Act 1995, for the authorisation of credit intermediaries, some of whom may sell PCPs to consumers on behalf of a finance company.  I have consulted with the CCPC on this issue and have been informed that in 2017 the CCPC undertook the first comprehensive study of the PCP market in the State. As part of its study the CCPC issued detailed questionnaires to all the financial institutions that underwrite PCP finance in the State. This allowed the CCPC to compile, for the first time, primary data relating to the number and value of PCP finance contracts issued. The following information has been provided by the CCPC on foot of this research.

In the State PCP finance is underwritten by standard financial institutions, manufacturer banks, and special purpose institutions which exclusively offer motor finance. Up to 1 August 2017 there were 6 financial institutions underwriting PCP contracts: Allied Irish Bank (AIB), Bank of Ireland Leasing Ltd.t/a Ford Credit, Bank of Ireland Finance, Volkswagen Bank GMBH Branch Ireland, RCI Bank and Services, First Auto Finance Ireland Limited, BMW Financial Services (Ireland) DAC trading as BMW Financial Services. It has been reported that Toyota has recently established its own manufacturing bank in Ireland.

The majority of PCP contracts (88%) are for new cars.

The following table outlines the total number of PCPs issued by year for both new and second hand cars and the total value (€) of PCP finance by year for both new and second hand cars  for 2015, 2016 and for 2017 up to 1 August 2017:

The following Table summaries  the level of arrears and defaults on PCP finance for 2015, 2016 and for 2017 up to 1 August 2017: