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A MAJOR CENTRAL Bank report has found that more than 360,000 people are using licensed moneylenders.
The most common loan amount is between €200 and €500 with people most likely to use the loans to buy goods or for major family events such as Christmas or birthdays.
While the number of licensed moneylenders had declined and rates by some can be “very high”, the report said overall rates of interest have remained largely at 2007 levels.
There report also said that some 69 per cent of people now understand the amount of interest charged on their loans, compared to a meagre 29 per cent in 2007. A report by the bank that year said that 71 per cent of customers failed to understand the amount of interest they were being charged.
The report also revealed that more than three quarters of people have been refused loans from a credit union or bank despite more than half reporting having savings with these institutions.
The Central Bank looked at the 43 licensed moneylenders across the country in drawing up the report, most of which are small or medium-sized firms which work on a local level.
The number of people using moneylenders has increased by 60,000 since the last research was carried out in 2005; however despite this, the Central Bank said that the sector “has not changed significantly”.
Loans
The report found 9 per cent of people borrow to pay bills or other debt.
More worryingly, the report also found that 15 per cent of people are currently repaying two or more loans with their moneylender.
The Central Bank said that a significant proportion – 25 per cent – of people surveyed experienced difficulties in making repayments in the past 18 months, with 63 per cent of those reporting this was caused by a drop in household income.
However most people said they believed they were being “treated fairly” when in arrears.
A majority of 65 per cent of customers reported that they have repaid a loan or line of credit early, though almost one in three of those recall receiving a rebate for doing so.
Struggling with repayments
Director of Consumer Protection Bernard Sheridan said the Central Bank will “continue to monitor this sector closely and take action where necessary to protect borrowers’ interests”.
“I would encourage consumers who are struggling with repayments on loans to seek advice from MABS who will help them consider their options,” he said.
The Society of St Vincent De Paul was critical of the report today as it failed to include any recommendations for further regulation of the sector. The society said the report “shows worrying levels of acceptance of high cost loans from customers”.
Brendan Hennessy said it also “fails to question adequately why so many people, mainly in low income groups, resort to such expensive forms of credit – people who are least able to afford high cost credit”.
- Additional reporting by Christine Bohan
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Any journalists out there to ask a few hard questions at all. We need Vincent Browne back
@what about pension who paid tax a prsi all there life
@Tony Gleeson: Who is doing anything about the Bonkers Pension System inflicted on people who only get a percentage of the 12 euro introduced in the budget together with living with a reduced contributory pension
Wow MM doesn’t have a fig roll with the 11 o clock coffee, riveting. Strange comments are closed on the fact genocide joey is adamant the world is dragged to the presipice of WW3 & he wants Europe & NATO involved too……… Surely there’s some in the democrats that’ll stop this escalation until 20th Jan when an actual President with a mandate takes control
@Kevvy kerrr: frightening developments for sure!! People talk about the ‘dawn’ of peace but it’s worth remembering it’s always DARKEST just before the dawn
@Frank Mc Carthy: Where is this magic phone call? He said he wouldn’t even have to be in office.. would have it sorted in 24 hrs he said. Why is The President of Peace leaving all this unnecessary death and destruction to happen when he has the power to make it stop with one phone call.. Ohh.. that’s right cause he’s full of siht just like you Ken..
@Brian: brenny, you’re aware the INAUGURATION OF PEACE isn’t until jan20th right?????
@Frank Mc Carthy: wasting time there Frank, thats one of brennys “new” stock
@Brian: The Maga crowd have gone nuts since election day. You’d imagine a dog would calm down once it finally caught it’s tail. But no; they’re rabid.
@Louis Jacob: ” Before I even arrive at the Oval office.. shortly after we win the presidency, I will have the horrible conflict between Russia and Ukraine settled” Poor Ken, Frank, Kevvy, Buster etc… cant even keep up with the B/S his “president of peace” spouts. We have to wait until inuargation now apparently for the magic phone call.. lol
@Brian: His low brow followers will believe anything!
But he’s definitely taking the biscuit
@Nigel Hayden: that developers money was accidentaly lodged into the private bank account of his wife!
Jammie dodgers.
Everyone knows elderly lizards don’t eat biscuits.
@Freda Peeple: who paid the bill today
@Alan Moloney: Expenses I guess
Here we go again another cycle of lies and empty promises to get elected. Also can anyone tell me if an escalated war breaks out in the Ukraine involving does the American election result get canned in favour of an emergency govt seeing as we can’t comment on a man with obvious dementia steering the world towards WW3 The yanks are the best ever at starting wars on other sovereign territories
@Michael McGrath: NO there’s no ‘canning’ the overwhelming victory for republican party…… scary that jan20th is now so far away…. fingers crossed Joe’s last throw of the ‘dice’ doesn’t lead to thousands more unnecessary deaths
@Michael McGrath: Jesus, the well is deep, and the conspiratorial thinking fashionable.
@Louis Jacob: No it’s not it was mentioned by a lot of people a while back maybe in the context that the election might be cancelled if the conflict was escalated to NATO countries, I was just asking the question if it was a possibility that it could happen now considering that’s quite an escalation the US president telling the leader of another country to attack another with weapons “given” to them by the US
Poor lad fair play no diabetes so
Politicians would say mass to get elected… When elected, they reveal they were atheists the whole time.
Lads I’m scared that Joe B…..x is going start Nuclear WW3 as he clearly isn’t thinking straight about the consequences and Kamala must have fell out with him after the post election
RTEs Miriam o callaghans brother with him you couldn’t make it up wonder what way will the RTE debate go!!!!!!!!!!
@Kevin O Brien: my money is on whoever have the 750€ Million windfall to RTE will get an easy ride of it,lol
Porridge is not a healthy breakfast, it’s a sugar rush, bacon is a highly processed food full of chemicals
@Bertie: oats are slow release energy…you know you tube is not a good source of info…I have 2 dieticians in family btw
@Bertie: Porridge is a very healthy breakfast. If you add sugar that is your choice. Honey is better and bacon if lean is also very health. Our meat unlike say the US is not full of chemicals.
That is what I have learned from dieticians!
Wow, that’s one piece of PR Propaganda by this journalist. O Callaghan being given a free ride by the Media. Any journalists have the balls to ask O Callaghan why he turned down a Junior Ministry offered by Micheal & why he is going for election again if he is turning down Ministries. The lies & empty promises are pissing people off at this stage, don’t vote any of these frauds in, use your vote as a protest & for radical change, rather than putting a man who has been at the top table for 17 years, being Taoiseach & Tanaiste, bankrupted the country & denied bailing out banks & has left us with a massive Housing crisis, Rental crisis, Cost of Living crisis, Health crisis, Immigration crisis, a mess & working families barely surviving, the guy should be in jail.
@SV3tN8M4: more of your propaganda nonsense – it is a news report on todays FF election campaign – you know, basic stuff about who was there, where they were, who they met, questions asked, answers given……blah blah blah
@SV3tN8M4: I’ve e mailed Jim O Callaghans personal secretarys numerous times as to how many days Jim has signed into the Dail, and then has left to practice as barrister in the high court? They have refused to answer me. Could any journalist ask him this please?
@Michael o connor: You can get the details from Dail Eireann!
What FF need to do is put money in the working man wallet is that two hard to do after Al the country is a washout with money
Why are FFG not making BOI pass on the ECB interest rate cuts to variable mortgage holders is it because the bank lobbyist is an x fine gael Man
No ! But he’s been taking the biscuit for the last 30 years
Couldn’t afford the jammiest dodgers once all that developers money was taken back out of the personal bank account of his wife?
Me’Hole Martin hasn’t told the truth in 30 years and longer!
Wow these vampires know how to stay in the shade while they suck the citizens dry
How could you trust, let alone vote for, a yoke that doesn’t even ate a bickey?
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