Financial institutions offering unsolicited loans at this time of the year could result in a large number of people falling deep into debt and struggling to meet ends meet in the New Year, according to Senator Maurice Cummins, Fine Gael.
"Banks and other financial institutions may consider offering unsolicited and unsecured personal loans a clever marketing ploy," he said.
"However, it could force some vulnerable people, who are under increasing pressure to provide for their families, into greater debt."
According to Mr Cummins, the ESB recently sent letter to customers offering loans of up to EUR3,100 for goods bought in their shops with 'no forms to fill out and no external credit checks'.
He said he raised the ESB situation with the Director of Consumer Affairs who referred me to the Financial Standards Regulatory Authority. However, the Authority said it was outside their remit.
"With the abolition of the Money Advice and Budgetary Supplement for people who fall into debt, it is of paramount importance that vulnerable sections of our country are not enticed to take out loans," he added.