Written answers

Thursday, 15 October 2020

Department of Finance

Consumer Protection

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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128. To ask the Minister for Finance if the recommendations of the 2018 Consumer and Competition Protection Commission, CCPC, report on personal contract plans, PCPs, in the car finance market are being progressed (details supplied). [30800/20]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As part of his review of the regulation of Personal Contracts Plans (PCPs), Mr Michael Tutty considered the contents and recommendations of an earlier CCPC study on 'Personal Contract Plans: the Irish Market' and also a separate Central Bank of Ireland study 'An Overview of the Irish PCP Market'. Following his consideration of these reports and his other considerations, Mr Tutty produced his report entitled 'Review of the Regulation of PCPs' (available at: ).

As the Deputy is aware, the Tutty Report recommended that further consumer protections in relation to PCP agreements be introduced and, in particular, it recommended that, and in accord with the relevant CCPC recommendation, the provisions of the Central Bank Consumer Protection Code which requires lenders to assess the suitability of the product for the consumer and also the ability of the borrower to repay the debt over the duration of the credit agreement, should be extended to hire-purchase/PCP agreements.

However, while the other Tutty Report recommendations can and are being implemented within the existing legislative framework, the implementation of this particular recommendation to all the providers of hire purchase and PCP agreements will necessitate new legislation and, as the Deputy is aware, I have obtained Government approval to draft a Bill to achieve this (see relevant press release attached: ). It is the intention of Government to publish this Bill as soon as possible.

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