St Vincent de Paul in Galway up in arms over moneylender tactics
One of the biggest moneylenders in the country is now offering One4all gift vouchers instead of cash.
The St Vincent de Paul has expressed concern at the new selling tactic by Provident Personal Credit, which is the largest regulated moneylending company operating in Ireland.
The One4all gift vouchers, which are being offered to borrowers, are much less convenient than cash as they are not accepted in all shops or services.
They also have an expiry date and if not used, customers have to write away to get them reissued with a penalty of €5 imposed on top of the inconvenience.
While not illegal, the SVP describes this selling tactic as unsavoury.
“One4all gift vouchers is an arm of An Post which is a trusted service to the community. At a time of real financial pressure for many, we do not believe An Post should be involved in such an unsavoury arrangement with a moneylender," remarked John-Mark McCafferty, SVP head of social justice and policy.
"Our members tell us that as austerity deepens, the use of licensed moneylenders in their communities is growing, and this is a worrying development.
“The poorest pay more for these loans than those of us who can access credit union loans. The interest rates associated with moneylenders are high and what appears as easy money up front turns into a significant financial burden in the longer term," he insisted.
There is a limit of €500 on the One4all gift cards which are prepaid cards issued by Bank of Ireland.