DUBLIN (7/13/12)--The Irish League of Credit Unions (ILCU) is urging Ireland's government to institute an interest-rate cap for payday lenders there.
The majority of "moneylenders," as they are known in Ireland, charge interest rates in excess of a 100% annual percentage rates (APR), with some charging rates as high as 190% APR, according to Western People (July 4).
A survey conducted by the league found that 40% of Irish consumers surveyed have borrowed to pay their household bills in the past 12 months. Of this group, the largest portion rely on financial help from family and friends, 30% rely on a credit union, 10% use a bank and 10% turn to moneylenders.
"With the level of personal indebtedness and financial exclusion in Ireland, there is a real danger of compounding the problem by allowing legal moneylenders to charge excessive rates," said said Kieron Brennan, ILCU CEO.