Personal loan document details to be made public within months, minister says as part of government’s push to crack down on fraud and protect consumers.
Personal loan documents are to be published within a month and will include details such as the amount owed and how long it will be paid, as well as any fees that will be charged for the loan.
Under the scheme, anyone who makes a loan can claim it as a hardship payment, meaning the government will cover the difference between the original cost and the amount they owe.
The department has published a list of financial institutions to which borrowers will be entitled under the scheme.
Understandably, people with personal loans will be keen to get hold of a copy of the personal loan document.
The new scheme comes as the Government has been criticised by the Oireachtas Public Accounts Committee (PAC) for its handling of the Personal Loans Service.
The service was criticised for failing to protect consumers against unscrupulous lenders, and also for failing in its role to collect on debt when it was given to people with mortgages.
In a statement to the PAC, Minister of State for Finance Paschal Donohoe said the Government would work with all stakeholders, including consumers, to ensure this scheme is fair and transparent.
“As a result of a significant increase in the volume of personal loan documents, the Department of Finance has been working with all parties to identify, assess and publish personal loan information for a period of up to 18 months,” he said.
“The process is still in its early stages and will not be complete before the end of the year.”
Personal loan data will be available to the public within two months of receiving it from the Department.
“Read more:The PAC also called on the Government to create a new system for collecting interest on personal loans and to publish details on its website.
The Department of Justice said the government was also working to increase transparency in the process for the collection of personal loans, and to develop a system to collect interest on loans and pay it to consumers within six months.”
In addition, the new system is expected to make it easier for people to see how their loan payments will be structured.”
The new system will ensure that consumers can see how much interest they are due on a loan and the timeframes required to pay it.”
In addition, the new system is expected to make it easier for people to see how their loan payments will be structured.
The Oireachs committee said that while the Government was not providing details of the new scheme, it was expected to be ready for use by the end and the Government had promised to publish a detailed scheme shortly.
It is understood the new process will be subject to the approval of the Oirish Parliament and is likely to be passed into law in the next few months.
The PAC’s report also noted that the Government’s financial services department was not yet fully aware of the scheme and that the public was being misled by the Government about the details of its plans.
“It is clear that the Department is yet to fully understand the nature and extent of its personal loan scheme and has not yet provided any details of how it will operate,” the report said.
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