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Are Loan Sharks breaking the law?


michaelo

Active member
Joined
Jan 20, 2008
Messages
144
Each year (normally around christmas) I hear stories of people receiving loans from loan sharks then they have to pay exorbitant amounts of interest. I am sure there is no documentation and all dealing is done in cash. Is this practice legal? I am sure the lenders are not regulated by the Irish Financial Services Regulatory Authority :cool:

The reason I ask this, relates to the "loan" that Celia Larkin received, to purchase a house, from the constituency office. The only difference I can see between this loan, and the loan sharks is that the loan sharks expect to get their money back.
 


florin

Well-known member
Joined
May 17, 2008
Messages
1,366
Yes, usury is a crime. I think 40% p.a. is the legal max., some loansharks charge 100% per week.
 

michaelo

Active member
Joined
Jan 20, 2008
Messages
144
Is there an amount above which you need to be registered with IFSRA, or can anyone act as a money lender?

For example, could I offer loans of 100k to the public with a 10% interest rate?
 

safrina

New member
Joined
Jul 15, 2008
Messages
1
All right, I 20 years old and I am a freshman in the fall and have no credit. My parents do no have the credit to be able to cosign on a loan, so I'm kind of at a loss. If anyone has a company that will give this kind of loan out to a student that would be wonderful. Does anyone know of any loan company that will issue a student loan without a co-signer? Thank you so much.
 

kerrynorth

Well-known member
Joined
Oct 5, 2005
Messages
1,525
michaelo said:
Is there an amount above which you need to be registered with IFSRA, or can anyone act as a money lender?

For example, could I offer loans of 100k to the public with a 10% interest rate?
You need to be licensed by IFSRA.
 

Conor

Moderator
Joined
Apr 7, 2004
Messages
5,206
florin said:
Yes, usury is a crime. I think 40% p.a. is the legal max., some loansharks charge 100% per week.
IIRC, some (legally) charge 166%apr.

There's some more about moneylenders here.
 

GDPR

1
Joined
Jul 5, 2008
Messages
223,358
In Ireland is debt collection agencies dont have any powers to enter your home etc. They are really powerless compared to the UK. In Ireland they are all bluff ;) so its best to have some kind of collateral pawnbroker style if you give out a loan.


How do you get licenced, does anyone know if its easy ?
 

Conor

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Apr 7, 2004
Messages
5,206
fionnmccool said:
How do you get licenced, does anyone know if its easy ?
You could try looking at that link I posted:
The Financial Regulator said:
Making an application to become authorised
Prior to submitting an application for a money-lender's license the applicant must publish notice of his intention to apply for a license in any national or local newspaper published in the State and circulating in the district court district that the applicant intends to engage or engages in the business of moneylending.

The application for a money-lending license should then be made in writing to the Financial Regulator and should contain that information detailed in Section 93(3) of the Act.

Refusal of authorisation
The Financial Regulator may refuse a license on a number of grounds under Section 93(10) of the Act. These grounds include, but are not limited to, failure to supply the appropriate documentation, or the possession of certain licences (book making, gaming, publican or pawn broking) or the opinion of the Financial Regulator that the applicant is not fit and proper to hold an authorisation or the cost of credit to be charged is excessive or any of the terms or conditions attaching thereto are unfair.

Once granted, an authorisation is valid for 12 months from the date specified. However the Financial Regulator may suspend or revoke an authorisation if the moneylender has been convicted of a criminal offence since becoming the holder of a license. Procedures laid down in the Act have to be followed by the Financial Regulator in these circumstances.

If the Financial Regulator refused or revokes an authorisation the intermediary has the right to appeal to the Circuit Court - the decision of the court is final.
 

bagel

Well-known member
Joined
May 7, 2007
Messages
1,410
michaelo said:
Each year (normally around christmas) I hear stories of people receiving loans from loan sharks then they have to pay exorbitant amounts of interest. I am sure there is no documentation and all dealing is done in cash. Is this practice legal? I am sure the lenders are not regulated by the Irish Financial Services Regulatory Authority :cool:

The reason I ask this, relates to the "loan" that Celia Larkin received, to purchase a house, from the constituency office. The only difference I can see between this loan, and the loan sharks is that the loan sharks expect to get their money back.



or a pound of flesh
 
Joined
Aug 6, 2007
Messages
22,910
fionnmccool said:
In Ireland is debt collection agencies dont have any powers to enter your home etc. They are really powerless compared to the UK. In Ireland they are all bluff ;) so its best to have some kind of collateral pawnbroker style if you give out a loan.


How do you get licenced, does anyone know if its easy ?

Best way is to hit people with CCJ (County Court Judgement) if owed debt and apply for attachment of earnings, they won't be borrowing anything for a while.

In UK what some lenders do is put a charge on the property which prevents the property ever been sold without their involvement.
 

dmaher

New member
Joined
May 1, 2011
Messages
2
Is there an amount above which you need to be registered with IFSRA, or can anyone act as a money lender?

For example, could I offer loans of 100k to the public with a 10% interest rate?
Im lookin 4 a short turm loan dat i can pay back weekly, 500 is all im after n ill hav it cleared over d next few weeks!! can u help out or put me on2 any1 that can! im from tipperary
 

PoliticsPhan

Active member
Joined
Mar 4, 2011
Messages
111
Its wildly acknowledged that Loan Sharks will eventually turn to using violent acts in order to acquire finance, surely that means that at some point down the line they are illegal??
 

Desperate Dan

Well-known member
Joined
Oct 26, 2010
Messages
5,741
Each year (normally around christmas) I hear stories of people receiving loans from loan sharks then they have to pay exorbitant amounts of interest. I am sure there is no documentation and all dealing is done in cash. Is this practice legal? I am sure the lenders are not regulated by the Irish Financial Services Regulatory Authority :cool:

The reason I ask this, relates to the "loan" that Celia Larkin received, to purchase a house, from the constituency office. The only difference I can see between this loan, and the loan sharks is that the loan sharks expect to get their money back.
Even if it's a loan shark I wouldn't go into the water. Did you see Jaws
1----10.
 

GDPR

1
Joined
Jul 5, 2008
Messages
223,358
Its wildly acknowledged that Loan Sharks will eventually turn to using violent acts in order to acquire finance, surely that means that at some point down the line they are illegal??
They'd have to be caught and convicted. I am reminded of Anglo for some reason...
 

DiarmuidM

Well-known member
Joined
Mar 28, 2011
Messages
576
But there is no upper limit with regards to the APR charged in Ireland by Money Lending Loan Sharks.

Moneylenders' loans - Itsyourmoney.ie

In France, I believe that there is an upper APR limit for money lenders of approx 21.3 % ?, Maybe somebody could confirm the rate ?

Legislation should be introduced in Ireland, but these Loan Sharks must be paying off some Senior Civil Servants and politicians, as the issue has never been addressed ?
 

Prester Jim

Well-known member
Joined
Jul 3, 2009
Messages
10,056
But there is no upper limit with regards to the APR charged in Ireland by Money Lending Loan Sharks.

Moneylenders' loans - Itsyourmoney.ie

In France, I believe that there is an upper APR limit for money lenders of approx 21.3 % ?, Maybe somebody could confirm the rate ?

Legislation should be introduced in Ireland, but these Loan Sharks must be paying off some Senior Civil Servants and politicians, as the issue has never been addressed ?
Very good point but CS doesn't legislate. blame the last few Justice ministers for the lack.
Should be changed forthwith though.
Will see if Shatter cares by his actions.
 

florin

Well-known member
Joined
May 17, 2008
Messages
1,366
Im lookin 4 a short turm loan dat i can pay back weekly, 500 is all im after n ill hav it cleared over d next few weeks!! can u help out or put me on2 any1 that can! im from tipperary
A student credit card lets you borrow up to 400, and if you got one from a few banks you could get a good bit borrowed easily. Not recommended as a long-term thing, but you absolutely have to have the cash and will be able to pay it back, it's probably the easiest way.
 

Researchwill

Well-known member
Joined
Aug 2, 2011
Messages
4,779
But there is no upper limit with regards to the APR charged in Ireland by Money Lending Loan Sharks.

Moneylenders' loans - Itsyourmoney.ie

In France, I believe that there is an upper APR limit for money lenders of approx 21.3 % ?, Maybe somebody could confirm the rate ?

Legislation should be introduced in Ireland, but these Loan Sharks must be paying off some Senior Civil Servants and politicians, as the issue has never been addressed ?
While it is true that Ireland does not have a maximum interest rate, it is possible to bring a circuit court application, to ask the court if the interest rate in all the circumstances is excessive.

47.—(1) A consumer or a person acting on the consumer's behalf may apply to the Circuit Court in whose Circuit the consumer resides or in which the agreement was made, for a declaration that the total cost of credit provided for in any agreement is excessive.
(2) Subject to this section, the Circuit Court may decide in any particular case coming before it, by an application under subsection (1), that the total cost of credit provided for in any credit agreement is excessive.
(3) In making the decision referred to in subsection (2) the court shall have regard to all relevant factors including—
(a) interest rates prevailing at the time the agreement was made or, where applicable, interest rates prevailing at any time during the currency of the agreement,

(b) the age, business competence and level of literacy and numeracy of the consumer,

(c) the degree of risk involved for the creditor and the security provided,

(d) the creditor's costs including the cost of collecting repayments, and

(e) the extent of competition for the type of credit concerned.

(4) This section does not apply to any credit agreement relating to credit advanced by a credit institution or a mortgage lender.
(5) In any case where the application under subsection (1) is made by a consumer or a person acting on the consumer's behalf the Circuit Court shall not make an order without first affording the Director the opportunity to be heard on the matter.
 

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