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Thread: Are Loan Sharks breaking the law?

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    Default Are Loan Sharks breaking the law?

    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

    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.

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    Politics.ie Member florin's Avatar
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    Default Re: Are Loan Sharks breaking the law?

    Yes, usury is a crime. I think 40% p.a. is the legal max., some loansharks charge 100% per week.

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    Default Re: Are Loan Sharks breaking the law?

    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?

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    Default Re: Are Loan Sharks breaking the law?

    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.

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    Default Re: Are Loan Sharks breaking the law?

    Quote Originally Posted by michaelo
    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.

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    Default Re: Are Loan Sharks breaking the law?

    Quote Originally Posted by florin
    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.
    Nothing will motivate the lazy / apathetic / Americanised / west-British types to embrace their culture and the Irish language.

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    Default Re: Are Loan Sharks breaking the law?

    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 ?

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    Default Re: Are Loan Sharks breaking the law?

    Quote Originally Posted by fionnmccool
    How do you get licenced, does anyone know if its easy ?
    You could try looking at that link I posted:
    Quote Originally Posted by The Financial Regulator
    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.
    Nothing will motivate the lazy / apathetic / Americanised / west-British types to embrace their culture and the Irish language.

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    Politics.ie Member bagel's Avatar
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    Default Re: Are Loan Sharks breaking the law?

    Quote Originally Posted by michaelo
    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

    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

  10. #10

    Default Re: Are Loan Sharks breaking the law?

    Quote Originally Posted by fionnmccool
    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.

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