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Amendment of section 93 of Act of 1995
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6. Section 93 of the Act of 1995 is amended—
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(a) by the substitution of the following subsection for subsection (1):
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“(1) The Bank may grant to an applicant a high cost credit provider’s licence authorising the applicant to engage in the provision of high cost credit on such terms and conditions as it thinks fit, but only after considering all objections made in respect of the application under subsection (2).”,
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(b) by the substitution of the following subsection for subsection (2):
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“(2) A person who intends to apply for a high cost credit provider’s licence shall before making such application cause to be published, in a national newspaper published and circulating in the State, a notice of the person’s intention.”,
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(c) by the deletion of subsection (4),
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(d) in subsection (5) —
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(i) by the substitution of the following paragraph for paragraph (e):
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“(e) details of charges not included in the cost of credit;”,
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and
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(ii) by the deletion of paragraph (g),
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(e) by the substitution of the following subsection for subsection (7):
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“(7) A high cost credit provider’s licence shall be valid for 5 years from the date of the grant of the licence.”,
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(f) in subsection (8) —
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(i) by the deletion of paragraph (d), and
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(ii) by the substitution of the following paragraph for paragraph (f):
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“(f) details of charges not included therein,”,
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(g) in subsection (10) —
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(i) by the substitution of the following paragraph for paragraph (g):
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“(g) in the Bank’s opinion, any of the terms or conditions of the applicant relating to credit are unfair,”,
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(ii) by the insertion of the following paragraph after paragraph (g) (as substituted by subparagraph (i)):
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“(ga) a proposed total cost of credit is excessive,”,
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(iii) in paragraph (h), by the substitution of “previous licence,” for “previous licence.”, and
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(iv) by the insertion of the following paragraphs after paragraph (h):
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“(i) the applicant has failed to satisfy the Bank that the applicant is, or will be, able to comply with any requirement imposed on the holder of a licence by, or under, this Part or any other provision of financial services legislation,
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(j) the applicant has failed to satisfy the Bank that the applicant conducts or will conduct the applicant’s business in such a manner as to ensure the protection of the applicant’s customers, or
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(k) the applicant has failed to satisfy the Bank that the applicant complies with any other requirement, compliance with which is considered necessary by the Bank in order to ensure—
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(i) the proper and orderly regulation and supervision of the provision of high cost credit, or
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(ii) the protection of the applicant’s customers.”,
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(h) by the substitution of the following subsection for subsection (11):
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“(11) The Bank may—
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(a) suspend or revoke a high cost credit provider’s licence, or
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(b) vary the terms or conditions of a high cost credit provider’s licence,
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where the Bank is satisfied that, since becoming the holder of a high cost credit provider’s licence—
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(i) the high cost credit provider, or any business with which the high cost credit provider is connected, has been convicted of an offence for contravening section 98,
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(ii) the high cost credit provider has become the holder of a licence referred to in subsection (10)(c),
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(iii) the high cost credit provider has failed to comply with any of the terms or conditions of the licence, or
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(iv) the high cost credit provider has failed to comply with or is failing to comply with any condition or requirement imposed by, or under, this Act or any other financial services legislation.”,
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and
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(i) by the insertion of the following subsection after subsection (18):
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“(20) For the purposes of subsection (10)(ga), a proposed total cost of credit shall be excessive where the interest rate for a loan to which the total cost of credit relates would exceed—
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(a) in the case of a loan (other than a running account)—
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(i) the maximum rate of interest standing prescribed under section 98A(2)(a)(i), or
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(ii) the maximum rate of interest standing prescribed under section 98A(2)(a)(ii),
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and
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(b) in the case of a running account, the maximum rate of interest standing prescribed under section 98A(2) (b),
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in each case, at the time the application is made.”.
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