Interest Rate Limits must be reduced – Mac Sharry

Following on from his ongoing work in the area of protection for homeowners, Senator Marc Mac Sharry has supported the move by the Irish League of Credit Unions at their AGM in calling for a limit on interest rates chargeable by licensed moneylenders.

“This motion passed by the ILCU is another positive step in ensuring that the utmost is done to protect families who face the risk of losing their home due to repossession and in coping with personal debt” said the Senator.

“In my work with the Prevention of Family Home Repossession Group (www.saveyourhome.ie ) we have highlighted the fact that there are many licensed moneylenders who are legally charging 187% APR in this jurisdiction or as high as 2,500% in other jurisdictions. This is unacceptable and we must support the ILCU in their motion which they have put to Government.”

“As the mortgage arrears and personal debt group prepare their recommendations for Government, I hope that they can take on board the motion passed by the ILCU as well as the proposals put forward by the Prevention of Family Home Repossessions Group.”

“The Group’s core objective is to effect legislative reform by way of amending the Enforcement of Court Orders Act to prohibit the granting of a court order for the repossession of a primary family residence unless the court is satisfied that a prescribed series of criteria are met including, an independent assessment of currently ability to repay, an assessment of original application and underwriting quality and consideration of alternative repayment options.”

The Senator concluded, “With the number of families in arrears continuing to rise, legislation to protect families homes must be enacted sooner rather than later. Equally as important is limiting the maximum rate chargeable by licensed lenders some of whose predatory activity is having disastrous effects on families nationwide.”