Money Lenders preying on vulnerable parents – Reilly
Sinn Féin Dublin City Councillor Noeleen Reilly has expressed concern for parents who resort to Money Lenders as they struggle to meet back to school costs.
Speaking today after Barnardo’s released finding from its Annual School costs survey, Cllr Reilly said:
“The average cost of sending a child to first year in secondary school is €775 and €400 to Primary School. This is an astronomical amount of money for any family to have to have to find.
“Many families cannot meet these costs out of their weekly income and are resorting to Money Lenders like Provident who are offering quick loans but at ridiculous interest rates allowed by the Government and the Central Bank.
“For example, a loan of €500 from Provident repayable over 52 weeks will cost €280 to finance.
“This is an absolute rip off and shows the urgent need for the Government and the Central bank to regulate Money lenders and put a cap on Interest rates.
“Interest rates are extremely low presently so how these money lenders can get away with this is beyond me.
“School costs are rising every year and at the same time the last government reduced the back to school grant.
“This needs to be restored immediately but also increase the School books grants as proposed by Sinn Féin.
“For parents who find themselves with no other choice than to obtain a loan, the Irish League of Credit Unions recently welcomed a new micro-credit initiative. It will provide for smaller loans with an average payment of €500 and with reasonable and affordable interest rates.”