Warning wanted on money ads

A charity has called for licensed moneylenders to carry warnings similar to those on packets of cigarettes.

The Society of St Vincent de Paul (SVP) is seeking to have all licensed moneylenders carry a tobacco style high cost loans warning on their advertising and literature.

In a submission to the Department of Finance, SVP has said that it is astonishing that no such warning is currently required in advertisements related to licensed moneylending.

The Society says that ‘Warning: This is a high cost loan’ should be on all moneylending advertisements and literature and the warning should also point out that alternatives to high cost loan offerings may be available and that people should check their options before borrowing. There are an estimated 330,000 customers of moneylenders in Ireland.

SVP also believes that there should be a statutory maximum cost of credit which can be charged by a moneylender and that consumers should have better access to sources of low-cost credit. This could be achieved through the introduction of a statutory interest rate cap.

Caroline Fahey, SVP Head of Social Justice, said: “This should be done at the same time and in conjunction with the introduction and strengthening of other measures to protect vulnerable customers of moneylenders.

“These other measures should include better access to sources of low cost credit for low income households, enforcement of the Consumer Protection Code for Moneylenders and better protection of customers of moneylenders, including better information, financial education and more inclusive mainstream banking services.”

The full submission can be found at svp.ie/cappingcostofmoneylenders.