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Bill on interest rate moneylenders can charge to go before Dáil again

The pledge comes after a woman who uses moneylenders to help with day-to-day expenses spoke to RTÉ's This Week programme about her situation
The pledge comes after a woman who uses moneylenders to help with day-to-day expenses spoke to RTÉ's This Week programme about her situation

Legislation to place a cap on the interest rate moneylenders can charge is to be put before the Dáil for a second time.

The last time the Sinn Féin bill was debated, it was defeated by the Government, but the party has promised to re-submit the legislation in the coming weeks.

The pledge comes after a woman who uses moneylenders to help with day-to-day expenses spoke to RTÉ's This Week programme about her situation.

"Linda", who lives in west Dublin and has two children, said she "gets very depressed" by her financial circumstances.

She works three days a week and is in college for two days.

"There's days I don't feel like laughing or smiling, when it's constantly going around in my head. I'm constantly borrowing from Peter to pay Paul, juggling money"

"I probably won't pay the rent this week but I'll have to pay a double week next week, because the rent money is being spent on something else that needs to be paid".

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She keeps a notebook to keep track of her finances, and said she often goes without things for herself, in favour of looking after her children.

"Every penny I have is constantly accounted for, there are days I might have to go without getting a haircut, or buying cheap hair dyes just to manage".

She said school expenses are a regular burden.

"I feel like I'm groveling with the school sometimes and begging. It's very degrading to put your circumstances out there," she said.

"I've gone to St Vincent de Paul and can be heavily dependent on them, and it's tough, there's not a day goes by when you can't think about it, there's never a day when I have an extra €20 in my purse."

She said she first used moneylenders after defaulting on a credit union loan.

"I got a loan out last week, but that was to pay the gas bill, and my son needed a new pair of glasses which cost €129, so I had to borrow," she said.

She said the lender calls every week and collects €10 from her. She said: "You can't miss a payment."

She said she will prioritise paying back the moneylender ahead of other bills in case she needs him again.

"It's a lifeline, the moneylender, I don't know what I'd do if he wasn't there."

She added: "Before that I had an engagement ring and I sold that, but I've nothing at this stage that I could sell."

"I had a cry the other day, I sat down and cried because I'm living in a house where everything is on a go slow. For a whole year I slept on a mattress on the floor because I didn't have a bed."

"You can't afford anything, everything you buy, you buy second-hand or off free sites, and it would be nice to say sometime 'I bought that, I worked hard and I bought that' but you can't even do that."

St Vincent de Paul said it has seen a growing number of people using money lenders.

Volunteer Nessan Vaughan said: "When you're living in a society that is as unequal as ours and it's in your face how unequal it is, it's understandable that people on the margins want to have some special days, and that drives people into borrowing money and getting into debt".

"It often takes a while when we're dealing with a family that we find out paying back the money lender is the root of the problem".

"But it's quite prevalent, and its around this time of year that people tend to resort to money leaders, and you might find next year, midway through the year, that the reason they are struggling is because they borrowed."

Sinn Féin's Pearse Doherty said it will reintroduce a bill which places a cap on the rates money lenders can charge in the coming weeks.

"Currently there is no cap, so theoretically they can charge any rate".

He said some lenders who charge high interest rates should have their rates restricted. 

"They have no place in Irish society, they are leeches, and all it is doing is causing families that are already in dire straights to feel more in that way".