But Demott Jewell of the Consumers’ Association of Ireland said money lending always hurts people, and he cannot see how high interest rates will help those who are already struggling to get out of debt. He added: “Money lending is always going to be a problem because the interest rate is an extra burden on people who are already struggling. From a starting point, it’s hurtful.
“I know this organisation is suggesting their rate is pitched and their business model is pitched so those who have a credit rating problem can ultimately escape from it.
“I do not see an iota of how that is feasible or realistic.”
Couple with debts (stock)
Dail votes in favour of stopping sale of residential mortgages to vulture funds
He said: “We believe there is a need to make access to credit possible for ordinary people who have limited credit history on file, often through no fault of their own, and cannot get a loan from their bank or credit union.” Last November, news that Amigo Loans had received a money-lending licence from the Central Bank prompted criticism from opposition parties, and Taoiseach Leo Varadkar said the Government may need to consider a cap on lender rates, though this has not happened yet. The Insolvency Service of Ireland said debt can be crippling for many – but there are many options available for people experiencing issues.
A spokesman added: “When unpaid debt becomes such a burden it prevents you from getting out of bed in the morning, brings a sense of dread when answering the phone or opening the post, it is time to take control of the situation.”
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