Money lending firm Provident Personal Credit has been fined €105,000 by the Central Bank for breaching regulations designed to protect customers.
The firm’s office in Co Donegal was found to have withheld part of 117 loans in order to repay money outstanding on previous agreements, which was in contravention of the Consumer Protection Code for Licensed Moneylenders.
The Central Bank also concluded that Provident has had credit control policies which could prevent the early repayment of loans in some circumstances.
Provident, which is a subsidiary of British firm Provident Financial, provides small loans of between €100 and €500, rising to €1,500 for existing customers.
It charges an APR of between 157.3% and 187.2% depending on the loan’s term.
The investigation into the company came after a themed inspection of the money lending sector by the Central Bank’s Consumer Protection Directorate in 2012; during which a number of additional issues were identified.
The Central Bank said the size of the penalty imposed on the firm reflected the importance it placed on the regulatory compliance of licensed money lenders.
“Where licensed moneylenders fail to ensure full compliance with their legal obligations, they should expect vigorous investigation and follow up by the Central Bank, and for the Central Bank to exercise its sanctioning powers where appropriate,” the authority said in a statement.
Provident said it regretted the contraventions and fully accepted the Central Bank's reprimand and fine.
"Since the contraventions, which relate to our Letterkenny branch and occurred last in October 2012, Provident Personal Credit has upgraded its procedures and control systems to significantly reduce the risk of this recurring," it said.
