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Legislation needed to cap interest rate charges

LEGISLATION is required to cap the massive interest rates charged by moneylenders, the Irish League of Credit Unions has argued.

Licensed moneylenders can charge as much as 188pc on loans which are often taken out by people on social welfare.

There are some 52 licensed moneylenders in the State. The Financial Regulator has issued a code of conduct for moneylenders which means they are required to inform consumers of the actual repayment cost of every €100 borrowed and warnings must be clearly stated about the high cost of credit.