Clampdown on hire purchase loans ordered by Paschal Donohoe
A clampdown on hire purchase loans agreed by retailers has been ordered by Finance Minister Paschal Donohoe.
The number of such loans, known as personal contract plans (PCPs), has rocketed in recent years and are now altogether valued at some €1.2bn. They mainly relate to car purchases but also apply to other costly items, such as industrial tools, TVs or consumer goods.
The Cabinet has agreed that it will now come under Central Bank regulations, where the consumer protection code is applied.
Figures supplied to ministers revealed that the number of PCPs has risen from 9,900 in 2014 to 65,600 this year.
The move to draft legislation to bring the loans in line with Central Bank rules comes after a report last November found such borrowings were not detrimental to consumers but were also not regulated sufficiently.
Meanwhile, Health Minister Simon Harris has pressed ahead with laws to restrict the sale of e-cigarettes, particularly for young people.
The Cabinet agreed proposed legislation which will block the sale of nicotine inhaling products to those under 18 years; prohibit the sale of tobacco products from self-service vending machines; introduce a licensing system for the sale of vaping products and also set minimum suspension periods for tobacco retailers convicted of offences.
In a statement, Mr Harris said:
Tobacco costs the Irish Exchequer a total of €10.6 billion every year and 6,000 deaths a year are caused by smoking. I am determined to continue to make the necessary legislative changes to confront this challenge and help reach our goal of being tobacco free.
The Irish Heart Foundation welcomed the new legislation to ban the sale of e-cigarettes to under-18s, but added that a blanket ban on the advertising of e-cigarettes to all age groups was also required.
Mr Harris announced that there would be fixed penalty notices for the new offences. Furthermore, offending retailers would be named and shamed, it was confirmed.
