Sinn Féin spokesperson on Finance Pearse Doherty TD has welcomed the passage of a motion in the Dáil that will see his legislation to cap the interest charged by moneylenders move to Committee Stage.

This comes after the Finance Committee recommended that the Bill proceed to Committee Stage. 

The Consumer Credit (Amendment) Bill 2018 would put a cap on the interest that moneylenders can charge borrowers.

Speaking today, Teachta Doherty said:

“The Dáil has passed my motion for our legislation to cap the interest that moneylenders to move to Committee Stage.

“At present, the government allows moneylenders to charge interest of 187 percent, and 288 percent when collection charges are included.

“These ultra-high interest rates are unethical, immoral and trap vulnerable borrowers into vicious cycles of debt.

“In 2018, 21 of 28 EU countries had some form of interest rate restriction in place to protect low-income and vulnerable borrowers.

“Irish borrowers are given no such protections. We must cap the interest charged by moneylenders.

“This legislation, Consumer Credit (Amendment) Bill 2018, is urgently needed, and is all the more necessary as we see families struggling with the cost of living in the run up to Christmas.

“So many of our people turn to moneylenders during this time – we can and must ensure that they are protected from ultra-high interest rates.

“Now that the legislation will proceed to Committee Stage, I look forward to strengthening the Bill and ending the rip-off interest charged by moneylenders that traps so many in a vicious cycle of debt.”