Moneylenders 'prey' on people with debts

THE STATE’S high level of personal indebtedness was leading to a growing problem of moneylending, Independent Wicklow TD Joe Behan told the Dáil.

“Moneylenders prey on the very vulnerable and they must not be allowed to get a further foothold in disadvantaged communities,’’ he added.

Calling for Government action, Mr Behan said countless families and individuals were suffering from severe stress and anxiety because of their inability to meet financial obligations. A consequence was that health concerns were not dealt with adequately because people could not afford the treatment, he added.

Mr Behan said he was prompted to raise the issue following “many heart-wrenching representations from my constituents’’. The figures for Ireland’s personal indebtedness were staggering, said Mr Behan. “The debt to disposable income ratio of our citizens rose by 270 per cent over the period from 1995 to 2008,” he said.

“This is by far the largest increase in a group consisting of Ireland, the UK, France, Spain and Canada, and gives us at least one international benchmark to compare our indebtedness relating to other countries with a similar standard of living.’’

Mr Behan said that the work of Mabs (Money Advice and Budgeting Service) should be promoted because it could make a difference to those struggling under the burden of debt.

Minister of State for Finance Dr Martin Mansergh said the Government was aware of the problem. He said the interdepartmental mortgage arrears group was considering support for homeowners in difficulty and would address personal debt. A final report was expected by mid-summer.