The Consumer Credit (Amendment) Act 2022 introduced interest rate caps for High Cost Credit Providers.
Under the legislation, the Minister for Finance prescribes the level of the interest rate caps by regulation. In doing so, the legislation requires the Minister to have regard to:
• the impact of the regulations on competition in the high cost credit sector;
• the impact of the regulations on the supply of credit in the high cost credit sector;
• the average rates of interest offered to customers in the high cost credit sector and any trends in such interest rates; and
• where setting the proposed rate would reduce the supply of credit in the high cost credit sector, the impact of such a reduction on financial inclusion.
The legislation further requires the Central Bank of Ireland to prepare a report assessing the impact of the interest rate caps on the points set out above.
The report, which was required to be completed within three years of the legislation coming into effect, was published by the Central Bank of Ireland in January 2026.
The report examines all of the points set out for consideration in the legislation. Further analysis has not been commissioned by my Department at this time.
