Moneylenders who 'prey' on vulnerable should have 'interest rates capped'

Sinn Féin finance spokesman Pearse Doherty said due to Covid-19 many families are facing their most difficult Christmas in years. Picture: RollingNews.ie

Calls have been made on the Government to cap interest rates charged by moneylenders who "prey" on vulnerable families.

Sinn Féin's finance spokesman Pearse Doherty said some lenders are charging up to 187% interest.

He said this time of the year is a cause of much worry for some and due to Covid-19, tens of thousands of people have lost their jobs and many families are now facing their most difficult Christmas in years.

"The choices facing them are stark. How can they make Christmas special for their families and still pay the bills? Do they buy presents or heat their homes?"

Many families face impossible choices this Christmas. 'Do I buy presents or do I heat the home?'

Money lenders are taking advantage of those families.

Let's make sure this is the last Christmas that money lenders can charge extortionate interest rates. - @PearseDoherty pic.twitter.com/2QNVyDtfBN

— Sinn Féin (@sinnfeinireland) December 17, 2020

Tánaiste Leo Varadkar said he is "open" to all suggestions but warned that such a cap could have unintended consequences.

"While a law may be passed with a view to capping interest rates, there is a risk of an unintended consequence of creating a new, larger market for moneylenders. This is the type of balance we must get right in any such legislation," Mr Varadkar told the Dáil.

Mr Doherty called on all parties to work together and support his legislation to cap the interest rates charged by moneylenders when it comes before the Finance Committee in January.

Mr Doherty also called on Justice Minister Helen McEntee to clarify further details relating to the appointment of Seamus Woulfe.

It came after Labour leader Alan Kelly told the Dáil that he had received a batch of over 300 documents which show that Ms McEntee requested the appointment be brought to Cabinet on July 6.

"By the minister's account to the Dáil, that is a full five days before she consulted with leaders about it between 11 and 14 July, as required by the Cabinet handbook."

However, Mr Varadkar said the matter did not come to Cabinet on that day and instead it was several weeks later after she had consulted with all party leaders and the Attorney General.

"It is often the case that something is put on the agenda but then not taken or withdrawn for many different reasons," he said.