Beware of 'predator' money lenders during festive season

Deputy Murphy was speaking in the Dáil chamber this week in support of the Consumer Credit Bill under Private Members Business which was sponsored by Sinn Féin.

He noted that many families and individuals were targeted by ‘predator ‘type money lenders who charged exorbitant interest rates. The Consumer Credit Bill aims to put a cap on the level of interest rates which money lenders are permitted to charge.

“It is extremely sad that in the run up to Christmas all over the country in every small town and city people will be taking out small loans to cover things for Christmas and they will pay dearly to these money lenders. I know of one case where a person took out a loan for €600 and the interest rate was 187% APR while others are paying 80 to 90% interest rates. Many of these illegal money lenders are charging exorbitant interest rates and people are afraid to speak out,” warned Deputy Murphy.

The Fianna Fáil TD noted that the Credit Union movement should be able to assist people but he noted that the controls and obstacles placed on Credit Unions by the central bank were not helpful.

“Let’s be clear- this is predator lending- these illegal money lenders prey on people. I know of one particular case where a woman with four children took out a loan from one of these loan sharks and they turned up at her house every evening, day after day week after week looking for that money and her children witnessed all of this- it is horrendous to think that people are subjected to this type of appalling intimidation. “In some cases blackmail is used and some people are threatened with violence. Members of the public should be wary of people calling to their doorsteps at this time offering money lending services- families can get caught up in these types of webs for years and suffer extreme financial hardship.

“Fianna Fáil is supporting the Consumer Credit Bill which aims to put a cap on the level of interest rates which money lenders are permitted to charge in a bid to tackle what is unfortunately an escalating problem particularly at this time of year,” said Deputy Murphy.