Some 65 legal moneylenders are operating under licence in the State. The licences are issued by the Office of the Director of Consumer Affairs annually, under the Consumer Credit Act 1995.
Under the Act, the Office of the Director of Consumer Affairs can set the APR (annual percentage rate) charges, and other conditions. These conditions include a collection charge, when calls can be made for repayments, and the number of days' notice at which a client can cancel an agreement.
Licensed lenders encompass traditional door-to-door lenders, catalogue companies and finance companies.
According to the Office of the Director of Consumer Affairs, the largest licensed moneylenders in the State are: Everyday Finance Ltd, of Merchant's Road, Galway; GUS Ireland Ltd of Upper O'Connell Street, Dublin; Jordan Estates Ltd, of Amiens Street, Dublin; Marlboro Trust Ltd, of MacCurtain Street, Cork; National Carways Ltd, of South Frederick Street, Dublin; Oxendale and Co Ltd, of North Circular Road, Dublin; Provident Personal Credit Ltd, of Bann Road, Dublin; R and P Credit Ltd, of South Circular Road, Dublin; and RTV Ltd, of Kylemore Road, Dublin.
Of the 65 moneylenders, 14 charge an APR of more than 180 per cent. The majority of lenders also charge a collection fee of between 15.5p and 99p in the pound.
Examples of typical loans charged by licensed moneylenders and the APR that applies are as follows:
A loan of £100 over 24 weeks with a credit charge of £20 amounts to an APR of 118.3 per cent. A loan of £100 over 20 weeks with a credit charge of £23 amounts to an APR of 188.4 per cent.
A loan of £100 over 26 weeks with a credit charge of £26.88 amounts to an APR of 159 per cent.
A loan of £100 over 24 weeks with a charge of £24.96 amounts to an APR of 165.1 per cent
A loan of £100 over 52 weeks with a charge of £37.28 amounts to an APR of 92.8 per cent.