The Government may introduce new laws to tackle financial institutions that charge exorbitant rates of interest.
Speaking at a pre-Budget forum this morning, Minister for Social Affairs Seamus Brennan said he was planning to strengthen and streamline the Money Advice and Budgeting Service (MABS) to help tackle the spiralling debt problem in Ireland.
"As part of reforming MABS I also want to confront the totally unacceptable high levels of interest currently being charged by financial institutions and companies on loans to those who are often most vulnerable in society, particularly those on welfare and on low incomes," he said.
"In the midst of this era of a surging Celtic Tiger economy we still have an underbelly of serious debt in which those most vulnerable are being charged exorbitant repayment rates on loans because they are considered to be a risk," the Minister said.
"I know this area is currently being investigated by the Combat Poverty Agency and the Financial Regulator, and I look forward to also receiving solid, practical proposals from them very soon.
"MABS was set up to take this country out of the grip of illegal moneylenders and it is not acceptable today that the most vulnerable should now find themselves in the grip of what effectively amounts, in some instances, to legal moneylending".
According to the latest statistics from MABS, more than half of its clients are on social welfare payments.
The Minister also said he wants to continue with reforms tackling child poverty, pensioner poverty, inadequate incomes for lone parents and the recognition of the role of carers in society.
