THERE have been calls for the strengthening of
regulations on moneylending by a Southside TD.
Deputy Catherine Byrne said new figures show the
number of families turning to moneylenders is continuing to soar.
“These figures suggest that the number of people
turning to moneylenders has shot up over the last couple of years,
? she said.
“As well as the licenced moneylending firms there are countless other
unlicensed operators that may go under the radar of State authorities.
“These companies are charging incredible rates of
interest. People may turn to moneylenders when they feel like they have no
alternative, but in reality this will just lead to them falling into much
deeper debt.
“Once you turn to a moneylender it is very, very
difficult to get on top of the huge repayments.
“Moneylenders are required to display their interest
rates under the provisions of the Consumer Protection Code for Licensed
Moneylenders. But, crucially, there is no cap on the interest rates that can be
charged.
“People turn to moneylenders when traditional sources
of credit, such as the credit union or the bank, are no longer an option for
them. Many older people or parents of young families are living week to week on
either low incomes or social welfare benefits, and can feel completely
overwhelmed when an unexpected expense arises. The only people who benefit as a
result are moneylenders.
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She added:
“I have previously suggested that measures
similar to those in place in the UK should be implemented. There, a range of
initiatives help those on low incomes from getting stuck in unsustainable debt,
including social lending at low interest rates to people on welfare.
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