Michael McGrath (Cork South Central, Fianna Fail)
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204. To ask the Minister for Jobs, Enterprise and Innovation her views on recent reports from the Central Bank and the Competition and Consumer Protection Commission on personal contract plans; the steps she has taken to date with regard to the plans; her plans in this regard; and if she will make a statement on the matter. [18660/18]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Report by the Competition and Consumer Protection Commission (CCPC) into the personal contract plan car finance market (PCPs) was the first comprehensive study of the PCP market in the state. I am also aware that the Central Bank published an Economic Letter “An overview of the Irish PCP market” in recent weeks.

The CCPC’s report made a number of recommendations, including to the Department of Finance and the Central Bank. These include a call for PCP agreements to be brought within the scope of the Central Bank’s Consumer Protection Code, thus mirroring the protections afforded to consumers when they take out other forms of credit.

Under the current regulatory framework, those arranging PCP products are not required to check the affordability or suitability of the consumer before selling them a PCP product. This contrasts with the requirements placed upon finance providers when selling other financial products, for example when a consumer takes out a loan to buy a car. While the majority of the financial institutions that offer PCP finance are already regulated by the Central Bank, the Central Bank’s Consumer Protection Code does not currently apply to hire purchase (HP) products or variants thereof such as PCPs.

I understand that the Central Bank publishes car finance data, which contains information on PCP contract numbers and PCP lending amounts. This data is contained in Table A.19 of the Credit and Banking Statistics. Data is currently available for the period between 2012 and December 2017 and I understand that the Central Bank is currently developing a regular publication and reporting of this which will begin in Q3 2018.

I am aware that the recommendations set out in the CCPC’s report are currently under consideration by the Department of Finance and the Central Bank.

A credit intermediary can arrange or offer to arrange a PCP for a consumer. The CCPC is responsible, under the Consumer Credit Act 1995, for the authorisation of credit intermediaries, who arrange financial accommodations for consumers to fund the purchase of goods such as cars, electronics or “white goods”. The CCPC licenses credit intermediaries and keeps an online register of credit intermediaries holding a valid authorisation. The CCPC also deals with complaints about the advertising of credit agreements. However, the CCPC’s remit, derived from the Consumer Credit Act 1995, is limited to this licensing role, as opposed to a more complex and robust supervisory or regulatory role for PCPs.

My Department will give careful consideration to the recommendations and findings in both reports and will continue to engage with officials from the Department of Finance in this regard.