Single parents paying up to 200% interest to moneylenders
16/05/2005 - 09:30:45A study commissioned by the One Parent Exchange Network (Open) has reportedly found that single parents are being targeted by money-lenders charging interest of up to 200%.
Reports this morning said the study had found that the State's 50 licensed money-lenders were the most likely source of credit for lone parents who need to borrow money.
However, Open has also accused the banking sector of predatory practices by offering unsolicited credit to families living on welfare.
The network has also reportedly queried whether the ESB is evading regulation by charging 29.9% interest on hire purchase agreements, just below the level at which it would have to register as a money-lender.
This morning's reports said the single parents questioned as part of the survey owed an average of €1,000 in utility bill arrears and €8,000 in credit-based debt.
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