CASH-strapped Donegal families are being fleeced by moneylenders charging outrageous interest on loans, a politician has warned.
New Sinn Fein Councillor Gary Doherty has called on the Government to introduce legislation which would limit the interest rates charged by moneylenders in Ireland.
Speaking today the new Councillor outlined his opposition to what he views as the extortionate rates being levied on the most vulnerable members of society.
“As Christmas approaches many families are struggling to pay bills and buy presents for their children. If you are on the bread lines these companies which offer easy access to cash can seem like a lifeline, but the cost of the loans is extraordinary,” he said.
“One well-known company is offering loans with an APR of 187.2%. That is a scandalous figure and it is an issue the Government would do well to address.”
A report in 2012 found that anywhere between 200-300,000 Irish people had loans with high-interest moneylending companies of which there are currently 47 operating in the State.
Charities such as the St Vincent de Paul are on record as voicing their concerns over the practice.
“My colleague Pearse Doherty brought in a Bill to the Oireachtas last year which would have limited the interest rates charged by these companies to 40%, however the Fine Gael/Labour Government opposed it,” said Cllr Doherty.
“I see that as yet another attack on the ordinary people, as it is only the most vulnerable who will take advantage of these loans. The situation is exacerbated by the Government’s refusal to re-introduce the Christmas Bonus paid to social welfare recipients.”
Councillor Doherty went on to applaud the work done by local charities to combat the damage done by debt in the local community.
“Charities such as St Vincent de Paul and even our local Credit Unions do fantastic work at this time of year, and I would encourage anyone thinking of taking out one of these loans to think of the other options before they take on a debt that they can’t afford.”
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