1 April 2018
By Mary Bermingham
Minister must resolve standoff on the regulation of €2.7bn of car finance – says COrk SOuth Central TD Michael McGrath
Fianna Fáil Finance Spokesperson Michael McGrath has called on Minister Paschal Donohoe to intervene and resolve a reported stand-off between two State bodies about who is responsible for regulating €2.7bn of car finance arrangements.
Deputy McGrath was commenting on foot of an article in today’s Sunday Business Post.Personal Contract Plans (PCPs) and hire purchase arrangements have become hugely popular in recent times and combined, they now account for €2.7bn of a total of €3.8bn of car debt.
“Last month the Competition and Consumer Protection Commission (CCPC) published a report on PCPs and recommended strengthening consumer protections. In my view, the most important recommendation was that the Central Bank’s Consumer Protection Code should apply to PCPs.
“I expected the government to ensure swift action to implement the report’s key recommendations. The report in today’s Sunday Business Post that the Central Bank and the CCPC are saying each other is responsible for regulating PCPs is a recipe for nothing happening. In that scenario, consumers and the motor industry, which relies heavily on this form of finance, could be the major losers.
“Minister Donohoe needs to bring the Central Bank and CCPC together and an agreement must be reached as to who is responsible for what. Doing nothing is not an option.
“PCPs and hire purchase agreements are of vital importance for the motor industry and have proven to be immensely popular with consumers. 126,000 PCPs have now been entered into.
“The best way to protect this form of finance is to ensure the statutory protections are extended to consumers and to have proper independent regulatory oversight of the sector. The government now needs to step in and ensure this happens without delay,” concluded McGrath.