No love lost as door-to-door money lender leaves the scene

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THE Director of Letterkenny’s Credit Union said there was “not a lot of money” for Provident Financial because of its “sky-high” interest rates.

Gordon Randles was speaking after the door-to-door money lender announced it was shutting down operations in Ireland.

In a statement, the company blamed the strain of the coronavirus pandemic for its decision to stop lending.

The announcement came days after Finance Minister Paschal Donohoe said the government planned to gradually lower the current cap on interest rates on loans from licensed money lenders.

According to the Provident Ireland website, its annual percentage rate (APR) of charge stands at 187.2 percent.

Mr. Randles said any credit union would have a “dark view” of money lenders and their “sky-high rates”.

Letterkenny Credit Union. Her boss claims that the financial institution offers loans at a fraction of what Provident charged its customers.

“They had a 100 percent plus APR. We have a household budget loan that has an APR of 7.2 percent. You can see the extreme difference and the hardships Provident would have brought to any household income, ”said Letterkenny Credit Union CEO.

A previous ad campaign saw the Credit Union go directly to Provident by highlighting the difference in their borrowing rates.

The interest on a € 300 loan from Provident was in the range of € 90 while with the Credit Union it is less than ten euros – “a huge difference,” he said.

“We wouldn’t be very grateful to door-to-door money lenders for the interest rates they charge.

“What we would say is that we are always here to help and people should come and engage with us and build a relationship with us.

“The slogan of our family budget loan is ‘don’t let little problems turn into big problems’ and we will always encourage people to come to us because if you build that relationship it will be good in terms of loans.”

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Posted: 4:30 p.m. July 14, 2021

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