Independent Ireland TD for Cork North Central, Ken O’Flynn, has warned that high-cost credit remains widespread in Ireland, despite the decline of traditional moneylending, and said the Government has failed to adequately regulate lending practices that continue to exploit vulnerable consumers.
“High-cost credit has not disappeared in Ireland — it has simply changed shape,” Deputy O’Flynn said. “While door-to-door moneylenders may be fading, excessive interest is now being charged through online retail finance, premium finance arrangements, and other non-bank credit products.”
Deputy O’Flynn noted that many borrowers using these forms of credit have poor credit histories and limited or no access to mainstream banking services, leaving them with few alternatives and little bargaining power.
“In this market, choice is limited and risk is high,” he said. “Some regulated lenders are permitted to charge interest rates approaching 20 per cent, while others operate outside effective caps altogether. In some cases, borrowers face rates many times higher. That is not a functioning market — it is a regulatory failure.”
Deputy O’Flynn said that while the Minister for Finance has signalled an intention to regulate the sector, consumers need more than assurances.
“Intention is not enough. Borrowers deserve clarity on what products will be regulated, what limits will apply, and when protections will actually come into force,” he said.
The Cork TD confirmed that he has submitted a series of Parliamentary Questions to establish the true scale of high-cost lending in Ireland, the profile of borrowers affected, and whether the Government intends to introduce meaningful limits on the total cost of credit.
“Credit has a legitimate role in a modern economy,” Deputy O’Flynn said. “Exploitation does not. Regulation must be designed to protect vulnerable consumers, not to legitimise excessive interest under a new label.”
He concluded by urging the Government to move beyond statements of intent and deliver clear, enforceable protections for those most at risk of financial harm.