CBI warns over nine loan firms ahead of Christmas
THE Central Bank has issued a warning to consumers against nine unauthorised firms which are offering loans.
It comes as the country heads into one of the most expensive periods of the year, with consumers engaged in increased festive spending.
Households are forecast to spend €1.6bn more in December compared with the average monthly spend this year.
This works out at around €940 extra in household expenditure during the month, up €50 from two years ago, according to Ibec.
The firms in question include Black Panda Loans trading as Blue Moon Loans, Every Hour Loans, Lending Trees Ireland, Loans 2 Pocket, and One More Loans.
Also part of the regulator’s warning are Simply Bucks Limited, One More Finance, United Lending Company, and Money Finance trading as Zoloto Finance.
It is understood that some firms were charging an upfront fee to consumers, then not providing any loans.
A spokesperson for the Central Bank said “consumers should be wary of advertisements offering loans from unauthorised firms or persons”.
The regulator added that it is a criminal offence for an unauthorised firm and/or person to provide financial services in Ireland that would require an authorisation legislation, which the Central Bank is the responsible body for enforcing.
The Central Bank advised consumers to check online to find out if an entity they are dealing with is authorised.
In addition, it said consumers should always double-check the website and contact details of a firm or person, in case it is a ‘clone firm/person’ pretending to be an authorised business or individual.
Since obtaining the necessary legal powers in August 1998, the names of 377 unauthorised firms have been published by the Central Bank.