Paul Murphy (Dublin South West, RISE)
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207. To ask the Minister for Finance if he will provide details in relation to the regulation of companies (details supplied); if his attention has been drawn to the fact that these companies have increased the interest rates on lifetime loans by 1.37 %, from 4.82 % to 6.19 %; his views in relation to this dramatic increase in interest rates; and if he will make a statement on the matter. [52507/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Central Bank advises that Seniors Money Mortgages (Ireland) Designated Activity Company, trading as Seniors Money/Spry/Spry Finance, is authorised by it as a Retail Credit Firm (RCF). RCFs are required to comply with all relevant requirements of financial services legislation and the regulatory requirements set out in the Central Bank's existing codes of conduct and regulations. These include: 

- the Consumer Protection Code 2012,

- the Code of  Conduct for Mortgage Arrears 2013,

- the Central  Bank  (Supervision  and  Enforcement) Act  2013  (Section 48) (Lending to Small and Small and Medium-Sized Enterprises) Regulations 2015 (SME Regulations),

- the Fitness and Probity Regime,

- the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) Minimum Competency Regulations 2017, and

- the Minimum Competency Code 2017.

In addition, RCFs must comply with the authorisation requirements and standards for RCFs. These standards require that RCFs must be able to demonstrate that they are in a position to conduct their affairs in a manner that ensures the best interests of their customers are protected.

The price lenders charge for their loans is a commercial matter for individual lenders. As Minister for Finance I cannot determine the lending policies of regulated financial entities, including the interest rates they charge for loans including mortgages. Neither the Central Bank, nor I, have a statutory role in approving the interest rates that entities which are authorised to provide credit charge on their loans. There are many factors which can influence the interest rates lenders charge on their loans such as the cost of funds, the level of official interest rates and the costs associated with operating business.

However, the Central Bank has stated that it expects that all regulated entities take a consumer-focused approach in respect of any decision that affects their customers (existing and new) and communicate clearly, effectively, and in a timely manner with all customers.