THE CENTRAL Bank has found there is a high level of compliance among licensed moneylenders with a code of conduct it put in place nearly two years ago.
The regulator carried out inspections on nearly one in four of the 46 licensed moneylenders in the State to assess whether consumers were being charged in accordance with authorised APRs (annual percentage rates).
It also examined whether firms had licences on display and if they indicated the high-cost nature of loans on documentation issued to consumers. The bank said some “minor administrative errors” had been identified which were being followed up.
As much as €113 million is currently out on loan from legal moneylenders, who charge annual interest rates of between 23 and 188 per cent. The value such loans in 2008 is estimated to be €90 million.
According to the Central Bank’s register of moneylender licences, four firms – Southside Finance, Allied Credit Limited, Greenfields Financial Services and Provident Personal Credit Limited – are authorised to charge annual rates of interest above 180 per cent.
Under the code, moneylenders must also provide consumers who demonstrate difficulty in meeting their repayments with information on debt counselling services.
The Central Bank warned consumers to be aware that some loans from moneylenders have a high cost. It said people should consider other sources of credit if they were using short-term loans to fund long-term borrowing needs.
