A bill capping interest rates on money lending has been published by Treasury Secretary Paschal Donohoe.
the Consumer Credit (Amendment) Bill 2022 aims to limit the total borrowing cost for money lending loans. It will give the Treasury Secretary the power to make regulations to set a maximum interest rate on moneylending loans.
The bill also bans moneylenders from charging for home pickup services and includes a number of measures to modernize and streamline the sector, including:
- facilitating online maintenance of amortization books;
- allow licenses to be issued for periods of five years instead of one;
- Removed the requirement for moneylenders to register for a specific district court area and instead register statewide; and
- Changed the term “licensed moneylender” to “low cost loan provider” to distinguish between licensed and unlicensed moneylenders.
The legislation follows a comprehensive review of the moneylending sector conducted by the Treasury Department and takes into account input received during a public consultation conducted by the Department.
Mr Donohoe said: “This legislation will lower the cost of borrowing for moneylenders’ customers. The legislation also introduces a number of measures to reform and modernize the moneylending sector. These measures will provide better protection for consumers and streamline the licensing process for providers.”
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