Tuesday 19 September 2017

A slap on the wrist, but a warning to moneylenders long overdue

The Central Bank has stepped in to fine the Dublin-based arm of British online shopping and catalogue company Oxendale for sending pre-approved credit offers to its Irish customers. It may come as a surprise to many that the company is licensed by the Central Bank as a moneylender, and that those who avail of its credit offers can end up paying interest rates of up to 39.6pc.

In response to the Central Bank's censure the company said that it "took prompt action" to rectify the situation once it was informed that it was breaking the Central Bank regulation on moneylending institutions, introduced in 2009.

While the penalty of €8,000 may seem paltry to an international company with multi-million sales it was, said the Central Bank, a "reminder to the industry" to ensure that its procedures were in line with the Code for Licensed Money lenders.

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