Interest rate restrictions needed to protect vulnerable borrowers, UCC experts warn Oireachtas

The highest rate currently being charged by licensed moneylenders is 187% Annual Percentage Rate (APR). Picture: Press Association

Ireland’s current moneylending system is unfair, depletes the wealth of the most vulnerable communities, and keeps many trapped in persistent indebtedness, experts have warned the Oireachtas’ Finance Committee.

Dr Olive McCarthy and Dr Noreen Byrne of University College Cork (UCC) told TDs and Senators on Tuesday that interest rate restrictions would be required to prevent moneylenders from hitting at-risk borrowers with exorbitant costs.