PCPs in car sales need close monitoring - Pearse Doherty TD
Sinn Féin spokesperson for Finance, Pearse Doherty TD, has said the surge in the use of Personal Contract Plans (PCPs) for the purchase of cars needs to be closely monitored and regulated by the Central Bank.
Deputy Doherty was responding to the release of a report from the 'Competition and Consumer Protection Commission' on the issue.
Deputy Doherty said:
“Today’s report echoes many of the concerns I have previously raised on this issue.
"While most people seem to have had an acceptable experience with PCPs they are volatile products and still represent a danger to consumers and a possible threat of contagion to the wider economy.
"Previous documents I received under the Freedom of Information Act show concern at official levels that 'wilder elements' could become involved in the PCP arena.
"That remains my concern and I still believe full regulation of PCPs by the Central Bank must be on the cards.
"There are serious concerns that buyers can sign up for a car loan without fully understanding the loan conditions or without a comprehensive financial check to assess if they can afford it.
"No other product as expensive or as important as this could be sold on that basis by an unregulated lender.
"Vigilance remains the watchword here. I will be asking the Minister for Finance and Central Bank what action they will be taking on the back of this report.”