Donegal Sinn Féin -- Building an Ireland of Equals

Cllr Marie Therese Gallagher calls on worse off to avoid moneylenders this Christmas

Published: 4 December, 2009

Cllr Marie Therese Gallagher calls on worse off to avoid moneylenders this Christmas

Sinn Féin councillor Marie Therese Gallagher has urged her constituents facing financial difficulty this Christmas to not fall prey to moneylenders or loan sharks. She said that in many cases the extortionate interest rates charged by legal moneylenders make them as bad as illegal loan sharks.

Chairperson of the Glenties electoral area councillor Gallagher said:

"As the mother of a young family I am very aware of how expensive Christmas can be. However no matter how much pressure you are under, it is never a good idea to enter into a deal with any sort of moneylender.

"Illegal loansharks prey on the vulnerable, especially at a time like this. It might seem like the solution now, but in the New Year they will come knocking on your door and they will not be as pleasant as they were when they were lending you the money. Their interest rates are extortionate and they can often be violent. Legal moneylenders can also charge hefty sums of interest."

Clr Gallagher said the basic rule with moneylenders is that they have to be authorised by the Office of the Director of Consumer Affairs, otherwise they are branded loansharks. Some of the 60 or so moneylenders currently on the director's Register of Authorised Money Lenders offer loans based on APRs of as much as 196pc. There needs to be a concerted effort at Government level to deal with a situation that has been common to urban areas, but we are now witnessing these practices in rural Ireland, I am calling on the Government to develop a link between the Department of Social, Community and Family Affairs, credit unions and money advice centres

"If you are in a desperate situation this Christmas there are places you can turn to. The Vincent de Paul and MABs are just two organisations based locally who help people during what can be the most stressful month of the year," she said.