Personal microcredit scheme
Deputy O'Loughlin calls for progress on a promised personal microcredit scheme to help vulnerable people avoid moneylenders, citing Newbridge and pilot schemes through credit unions. The Tánaiste agrees the State must protect vulnerable borrowers and will examine the task force mentioned.
There is a reference in the programme for Government to the establishment of a personal microcredit scheme. I speak from the experience of my town in Newbridge, which has not had a credit union for several years. Vulnerable people seeking small loans have had to turn to moneylenders, with disastrous financial consequences. My understanding is that a commitment was made to set up a task force. Several pilot schemes were carried out involving credit unions, including Portarlington Credit Union, with great success.
There is a thriving licensed moneylending scheme in this country. People are being charged up to 189%. This is completely wrong. As far as I understand, Ireland is the only country in Europe that allows this.
We must adopt a policy that prohibits very high interest rates by implementing a restriction on the overall cost of credit. Will the Government introduce such a policy and, if so, when will this happen? When will the promised task force be in place?
Comment on this
I agree that the State needs to protect vulnerable people from being exploited by moneylenders due to their inability to deal with the conventional banking system or with credit unions. I will have to look into the particular task force to which the Deputy referred and get back to her.