Moneylenders are generally either individuals or companies whose main business is to lend money. But they will also trade in goods.
They generally charge high interest rates. Banks, building societies, insurance companies and credit unions are not considered moneylenders.
They are required to hold a licence from the Central Bank of Ireland to trade in moneylending.
The Central Bank (before granting a moneylending licence), will take into consideration a wide range of factors, including the trading background and reputation of the moneylender and the cost of credit that is proposed to be charged. Licences are renewed each year.
The Central Bank maintains a register of licensed moneylenders, and if you have a query about whether a moneylender is licensed or not you can find out by contacting the Central Bank.
Cash loans
Generally, door-to-door lenders give smaller loans over short periods - for example, between €100 and €500 paid back over three to six months. These are usually paid back by cash, and payments are often collected from the customer on a weekly basis by the moneylender or a collection agent appointed by the moneylender.
Some moneylenders provide larger loans for €1,000 or more, and these loans are sometimes repaid over a longer period such as a year or more. These moneylenders operate more like finance houses, issuing monthly statements on the loan and collecting repayments by standing order or by direct debit.
Goods such as toys or furniture 'loans'
Direct goods sales involve a moneylender selling goods like toys, furniture or jewellery directly to the customer at a marked-up or increased price and then allowing the customer to repay the cost in installments.
While there is no actual interest charged, the increase on the usual price or value of the goods can be considered as a form of interest.
Repayment and collection
Many moneylenders will want to collect loan payments from customers by cash each week, and will charge a collection charge for this service.
Any collection charges that may apply must be outlined to the customer in his/her lending agreement before he or she signs it. If the moneylender is sending an agent to the customer's house, the agent must have written authorisation from the moneylender to do so, in practice often in the form of an ID card. The agent is only allowed to collect repayments and cannot initiate new loans.
Calling to your home - the rules
Under law, the moneylender or their agent can only call to a customer's home to collect repayments at designated reasonable hours. These are usually 10am to 9pm Monday to Saturday, with collection not allowed on Sundays and public holidays. In certain cases, collection may be allowed between 8am and 10am on weekdays but the customer must have given permission for this on the lending agreement.
Harassment
Under Section 11 of the Non-Fatal Offences Against the Person Act 1997 it is an offence to demand payment of a debt in a way designed to alarm, distress or humiliate. This also covers both blackmail and extortion. (Extortion means using intimidation or the threat of violence to obtain money, information or anything else of value from another person).
If someone is charged with this offence and it is tried as a summary offence (that is, in a District Court by a judge only) the maximum penalty is a fine and/or 12 months' imprisonment. If tried as an indictable offence (that is, in the Circuit Criminal Court or Central Criminal Court before a judge and jury) the maximum penalty is a fine and/or 14 years' imprisonment.
Complaints
Licensed money lenders are not subject to the Consumer Protection Code. The Central Bank of Ireland has a code specifically for licenced moneylenders.
Useful links
The Financial Regulator's Consumer Protection Code
The Citizens Information's full guide to moneylending and your rights
