‘Legislation needed to cap moneylending rates’

The Central Bank said only the Government can move against moneylenders charging interest rates of 150%-220% by introducing legislation to govern the sector.

Yesterday, the Irish League of Credit Unions (ILCU) called for a cap to be put on the amount of interest that legal moneylenders can charge.

At present, no such cap exists and moneylenders have successfully applied to the Central Bank to charge interest rates of up to 287% on a year-long loan.