New bill to limit interest rates for money lending
A bill to limit interest rates on money lending has been published by Finance Minister Paschal Donohoe.
the Consumer Credit (Amendment) Bill 2022 aims to limit the total cost of credit on lending money. It will give the Minister of Finance the power to make regulations to fix a maximum rate of interest for loans of money.
The bill will also prohibit pawnbrokers from charging for door-to-door collection services and includes a range of measures to modernize and streamline the industry, including:
- Allow online maintenance of reimbursement books;
- Allow licensing for periods of five years at a time instead of one;
- Remove the requirement for pawnbrokers to register in a particular district court area and register statewide instead; and
- Change the term “approved lender” to “high cost credit provider” to differentiate between approved and unapproved lenders.
The legislation follows a thorough review of the moneylending sector undertaken by the Ministry of Finance and takes into account comments received during a public consultation organized by the Ministry.
Mr. Donohoe said: “This bill will reduce the cost of credit for loan shark customers. The legislation also introduces a series of measures aimed at reforming and modernizing the money lending industry. These measures will provide better protection for consumers and streamline the licensing process for suppliers.