Illegal Money lending ?

jblack

Can a business lend money for the purchase of a product to a private individual without being regulated by the Financial Authority?

The interest offered is below 23% as per the COnsumer Credit Act, 1995 definition of a moneylender..

I would have though that all contracts that lend money that do not have a licensed lender are illegal/unenforceable?

Thanks

Forest Master

I can lend my friend €200 and ask him to pay me back €220 if I want to and if he agrees. It's my money, and we're both legally entitled to make an agreement if we wish.

Edit: sorry, you asked if a "business" could - not sure....

jblack

Can a business therefore self finance hire-purchase agreements without going through an intermediary?

jblack

Forest Master wrote: »

I can lend my friend €200 and ask him to pay me back €220 if I want to and if he agrees. It's my money, and we're both legally entitled to make an agreement if we wish.

Edit: sorry, you asked if a "business" could - not sure....

No worries- I have a mate who got a "knock on the door" the other night looking to take back a hi-fi system he had bought from a private seller who has since vanished into thin air.

Turns out the original seller is not on financial regulator's list of approved intermediaries and I reckon the hire purchase agreement originally in place is meaningless against my mate.

Obviously if it was legit then he'd probably have to give back the hi fi

dudara

Moved to Banking & Insurance & Pensions

dudara

BuffyBot

You need proper legal advice, something we're neither qualified or permitted to dispense here.