The Central Bank is investigating a small number of money lenders for breaches of the consumer protection code.

The bank carried out a number of inspections and found the majority of firms were broadly compliant. However serious issues which were found in a small number of firms are being followed up individually.

The inspections focused on the charges imposed by the lenders and in particular on whether consumers were being charged in accordance with moneylenders’ authorised annual percentage rates (APRs) and costs of credit as set out in their licence.

"This was a key focus for the Central Bank, given that moneylenders’ loans can be more expensive than other forms of credit" the Central Bank said in a statement.

The Bank adds that it is now considering enforcement actions for a small number of the firms based on concerns.

The results of the inspection are summarised below:

• Overall, the inspections revealed that the vast majority of firms were in compliance with the provisions. This means that consumers were not charged over and above what they had agreed to pay and what the moneylender was allowed to charge.
• In all cases the firms had indicated the high-cost nature of loans on loan documentation issued to consumers, as required under the Moneylenders’ Code.
• Some non-legislative and administrative errors were identified that are being followed up with firms on an individual basis.
• Examples include summing errors on the repayment schedules. The Central Bank will ensure that these firms put controls in place so that all consumer repayments are accounted for correctly and that refunds are given to consumers where necessary.
• A number of firms did not have both their licence and licence appendix on display at their business premises, as required under the (Consumer Credit) Act. Firms have been reminded that they must display their licence and licence appendix.