Written answers

Thursday, 4 October 2018

Department of Finance

Financial Services Regulation

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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75. To ask the Minister for Finance his views on the emergence of new financial products that involve a service in which the lender buys directly from a shop on behalf of borrowers such as a website (details supplied); the rights of the borrowers in this scenario; and his plans to regulate the products. [40360/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I wish to thank the Deputy for raising this matter.

In light of this query, I have contacted the Competition and Consumer Protection Commission (CCPC). I have been advised that the CCPC recently received a press query in relation to this issue. The CCPC have advised that

"Under the Consumer Credit Act 1995, the CCPC provides licences to credit intermediaries and keeps an online list of credit intermediaries holding a valid authorisation at the time of enquiry. This is known as the Register of Credit Intermediaries."

The CCPC have confirmed that while they generally do not comment on any individual company they can confirm that the company in question is not a registered credit intermediary. That said, at least some of the shops through which it operates are on the Register of Credit Intermediaries.

The Central Bank has informed me that this entity is not regulated.

I share the Deputy’s concern regarding the rights of borrowers. I will be writing to the Central Bank to ask them to examine the business model for this firm and to ascertain whether it complies with all regulatory requirements.

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