Sinn Féin proposes cap on moneylender interest rates

Sinn Fein spokesperson on social protection Claire Kerrane, who has launched proposals to tackle poverty in Ireland. File Picture: Gareth Chaney/Collins

Covid-19 has resulted in a significant widening of the poverty gap and urgent action is required to address household debt, Sinn Féin has said.

Launching proposals, which include a cap on the interest rates by moneylenders, who can charge up to 288%, Sinn Féin social protection spokesperson Claire Kerrane said some people had been able to save during the pandemic but others were seriously struggling.

That division of the haves and have-nots has probably always been there and I think it has probably deepened.

"In relation to to Covid we are seeing that people have been able to save and household savings have increased but it's really important to say that that is in some circumstances," she said.

"Covid-19 has had a devastating impact on workers and on families and livelihoods have been lost, thousands of people have lost their jobs, and thousands of people are now living on reduced income. Yet the same payment obligations and bills remain to be paid."

She said the financial pressure some people are now under has been compounded by the decision not to reintroduce the mortgage breaks and by recent increases in energy prices.

We know there are over 700,000 people living in poverty. We have very high rates of poverty amongst lone parent families, amongst children, and these are issues that need to be tackled."

Sinn Féin's proposals include the establishment of a rent arrears resolution mechanism within the Residential Tenancies Board to support tenants with rent arrears.

Sinn Féin's @ClaireKerrane publishes proposals to tackle issue of household debt, including:

👉 Establish rent arrears resolution mechanism within RTB
👉 Cap interests rates charged by moneylenders
👉 Make MABS one-stop shop for debt resolution

See: https://t.co/cGsObK2xXs pic.twitter.com/BsfZ64baLm

— Sinn Féin (@sinnfeinireland) December 7, 2020

“We also want to transform MABS into a one-stop-shop for debt resolution, allowing them to hire and retain personal insolvency practitioners, something they have been calling for in their own budget submissions since 2017," Ms Kerrane said.

"With this, we also need to see wider access to existing debt supports such as debt settlement arrangements to ensure that people can actually afford to seek support in the first place."

She said Christmas could always be a difficult time for many families and this year would be particularly stressful.

"I want them to know that supports are there to help them to manage their debt and I am also conscious that sometimes the supports they need go beyond financial assistance alone and we must ensure that adequate mental health supports are also available," she said.