The Society of St Vincent de Paul has welcomed moves by the Central Bank to strengthen measures to protect customers of licenced moneylenders.
The proposed measures announced by the Central Bank, if properly enforced, should provide much needed protection to the 340,000 licenced moneylender customers in Ireland, according to the SVP.
The society was responding to publication of the Review of the Consumer Protection Code for Licensed Moneylenders, which includes proposed measures that would enhance the framework of protections
for customers. A public consultation on the contents of the revised code will remain open until June 27.
The proposed measures, particularly the introduction of a debt to income ratio limit and greater restrictions on advertising and unsolicited contact are very welcome and it will be critical that compliance with these measures is properly enforced, according to the SVP.
Kieran Stafford, SVP National President said “The people that we are helping are on such low incomes that bills, utilities, and rising rents, have forced people to access money from lenders when they just can’t make up the difference themselves.
“Pressure points like Back to School, Christmas, Confirmations and Communions also put significant strain on low income families and feel they have no choice but to turn to moneylenders.
It is our experience that people tend to use moneylenders when they have limited access to other sources of credit and they may be worried about cutting themselves off by reporting abuses within the sector,” he said.
According to Dr Tricia Keilthy, SVP Head of Social Justice: “SVP volunteers try to discourage people from using doorstep credit services and offer responsible alternatives, such as the ‘Personal Micro Credit Loan’ (PMC)
offered by the Credit Union.
“Volunteers continue to signpost potential customers to the scheme, as well as encouraging local credit unions to take part. The availability of affordable credit is key but proper regulation and protection is also needed,” she said.