Moneylending
report criticised

The Society of St Vincent de Paul (SVP) says that the report on moneylending published by the Central Bank fails to include any recommendations for further regulation of the sector and shows worrying levels of acceptance of high cost loans from consumers.

The Society of St Vincent de Paul (SVP) says that the report on moneylending published by the Central Bank fails to include any recommendations for further regulation of the sector and shows worrying levels of acceptance of high cost loans from consumers.

SVP says it appreciates that the purpose of the report was to provide an overview of the sector with the aim of ‘informing the Central Bank work in this area and to gain a better understanding of the relevant issues that affect the moneylending industry and to assist the Central Bank develop future policy’.

“However the report fails to examine critically the growth and size of the industry in Ireland as well and the extremely troubling acceptance of moneylending as a form of credit to 360,000 households” Mr Brendan Hennessy of St Vincent de Paul said. “It also fails to question adequately why so many people, mainly in low income groups, resort to such expensive forms of credit and it offers no critical analysis of moneylenders who can charge combined interest and collection charges at APR rates of up to 287.2%.