Moneylenders charging 188% interest accused of ‘legal extortion’

LICENSED moneylenders charging hard-pressed families up to 188% interest are carrying out “legal extortion on a grand scale”, the deputy Government chief whip said last night.

Fianna Fáil TD Billy Kelleher acknowledged existing legislation governing moneylenders was flawed because it did not set out maximum limits for interest rates. But he signalled the Government would move on the issue “early in the New Year”.

Discussions are ongoing between the Department of Social and Family Affairs and the Financial Regulator to see how best to address the issue.