LIMERICK City councillors have called for a ย clampdown on legalย moneylenders who are collecting up to 200 per cent in interest and causing misery to people who can least afford their exorbitant rates.
At last Mondayโs Metropolitan District meeting of Limerick City and County Council, Cllr Joe Leddin (Lab) got full support from his colleagues for a motion calling on Finance Minister Paschal Donohue to introduce interest caps on lending bodies.
โThere are a numberย of these so-calledย credit companies distributing promotional leaflets around certain housing estates, offering instant approval for โฌ100 to 500 regardless of the personโs circumstances.
โThey charge up to 60 per cent in interest. They are, in my view, preying on low-income families who are looking for loans at this time of year.
โA โฌ500 loan they can end up costing โฌ700, taking into account interest rates. Yes, they are licensed but there is no cap on interest. In my view, these are one step above the moneylenders who have scourged people in this city for yearsโ.
The City West councillor also called on the Minister to promote more affordable lending institutions such as the credit union, pointing out that such institutions are more likely to be supportive and to help people who get into difficulty with repayments.
Supporting the call Cmhlr Sรฉighin ร Ceallaigh (SF) said that โ60 per cent interest was a conservative estimate as there were also collection and court charges. Youโre talking up to 200 per cent, dependingย how long it goes on for.
The motion was unanimously supported.