Ireland’s largest moneylender, Provident Financial, has announced it will shut its doorstep lending business, as full-year results on Monday highlighted the strain the coronavirus pandemic and growing customer complaints have put on subprime lenders.
The move comes just days after Minister for Finance, Paschal Donohoe, said the Government planning to “gradually” lower the current interest rate cap on licensed moneylenders’ loans. They can currently charge up to 288 per cent a year to customers.
In a statement on the company’s Irish website it said: “Over the years, we’ve been proud to help people who need a loan and can’t get one elsewhere. However, the tough economic situation has resulted in us making the difficult decision to stop lending.
“As of May 10th, we won’t issue any new loans. This includes new loans to existing customers.”
It said loans would still be provided to those customers who had already applied for finance and had signed their loan agreements. Existing loans must be repaid in line with their terms and conditions.
Sinn Féin finance spokesman Pearse Doherty called for “swift action in the personal credit sector”.
“There is no doubt that its withdrawal from the Irish market requires a coordinated response to protect the interests and resilience of borrowers,” he said, calling on the Government to work with on legislation that “protects borrowers and puts an end to the scandalous rates of interest these moneylenders charge”. Sinn Féin has introduced legislation that would limit moneylenders to charging interest of no more than 36 per cent.
He also pressed for legislation to double the rate of interest that credit unions can charge on loans – from 1 per cent a month to 2 per cent. “This would allow credit unions to play a greater role in the personal credit market, and offer an affordable and more sustainable option for borrowers who need access to credit.
Provident Financial is also stopping its doorstep lending business in Britain. The company reported a pre-tax loss of £113.5 million for 2020, compared with a £119 million profit the previous year. The biggest drag was a £75 million loss in its consumer credit division, which includes home credit.
Provident’s business has also been affected by a series of self-inflicted and external difficulties. Its consumer credit division has been loss-making since a botched effort to modernise the unit in 2017, which led to a pair of profit warnings and an emergency rights issue.
More recently, its recovery has been hampered by an increase in customer complaints that prompted an investigation by the British regulator, the Financial Conduct Authority.
“While Provident is no longer issuing new loans, customers can continue to engage with the firm as normal with any queries on existing loans,” the Central Bank said. It added that the moneylender had assured the regulator that it would be contacting all existing customers over the coming days and directed all queries to the company.
Moneylending in Ireland hit a high in 2013, when some 360,000 people borrowed €301 million. Since then, however, it has been in decline, with latest figures from the Central Bank, published in February, showing that 283,000 people borrowed €151 million from moneylenders in 2020, with an average loan of €509.
Moneylenders licensed by the Central Bank can charge Irish customers up to 188 per cent APR on loans, rising to 288 per cent APR including collection charges.
Borrowing €500 over 26 weeks from Provident would cost you €650 to repay, The Irish Times cited in a report on the Irish moneylending market earlier this year. Extending those borrowings out to a year will see the cost rise to €780.
A similar loan with a mainstream bank would cost just €535 to repay after one year.
Jason Wassell, chief executive of Britain’s Consumer Credit Trade Association, which represents alternative and high-cost lenders, said the Provident decision meant that “access to credit will be reduced for hundreds of thousands of people”. –- Additional reporting Copyright The Financial Times Limited 2021
HSE working to amend booster system as people receive multiple appointments
The Health Service Executive (HSE) is working to amend the coronavirus vaccine system, as multiple channels offering third jabs has caused challenges for the booster campaign, HSE chief operations officer Anne O’Connor has said.
Speaking on RTÉ radio’s Morning Ireland, Ms O’Connor explained that the booster vaccine was available through vaccination centres, general practitioners and pharmacies.
Some people had gone to their local pharmacy to get their booster vaccine and then had received an appointment at a vaccination centre, she said. She called on people to cancel their vaccination centre appointment if they had received their booster through their GP or pharmacy.
Ms O’Connor’s comments come after Taoiseach Micheál Martin said on Tuesday that there were 87,000 no-shows for boosters last week, and the chairman of the Irish Medical Organisation’s GP committee, Dr Denis McCauley, described the non-attendances as “very disrespectful”.
Ms O’Connor said the priority for the HSE was to get as many people fully vaccinated as possible.
When asked about the lower levels of people in the 60-69 age cohort who have received their booster vaccine, Ms O’Connor said that not everyone in that age group would have had their second vaccine more than five months ago. That was “a natural limiter”.
Ms O’Connor said people possibly were apprehensive or busier, now that many were back at work or were preparing for Christmas, but the vaccine was important as was the booster.
To date more than a million people have received their booster vaccine, she added, and appointments will be offered to people aged between 50 and 59 from Thursday.
“We will also have walk-in centres open to people to get their vaccine and as ever we encourage everybody to avail of the vaccine. It’s really important, especially with a new variant, that we try to protect as many people as possible,” Ms O’Connor said.
Meanwhile, Dr McAuley told Newstalk Breakfast that there were very few no-shows to booster appointments at GP surgeries, because people know their GP personally.
Now was not the time for “messing”, he said in relation to people failing to attend their appointments at vaccine centres.
“If you get a vaccine appointment, make sure that you go there rather than getting your hair done or going shopping – or if it is a work thing, stay on the helpline to get a new appointment.
“Be respectful of the mass vaccination centres. These are people who are working very hard and it is very disrespectful to have over 80,000 people not turn up in one week. It is not appropriate. You wouldn’t do it to your GP so why are you doing it to these healthcare workers.”
There was also a concern that some people were waiting to see what happens with the Omicron variant before getting their booster. Dr McCauley said that the booster would greatly reduce the chances of picking up the virus or having to go into hospital
Dr McCauley said there needed to be “a call to arms” for people to get vaccinated and he warned that when more information about Omicron emerged, booster appointments could be harder to come by.
All you need to know on getting the Moderna vaccine as a booster
People due to receive their Covid-19 booster vaccine in coming weeks will primarily be offered the Moderna dose at HSE vaccination centres.
The HSE is reported to have large supplies of Moderna due to expire next month, so that will be the main vaccine administered over coming weeks to the over-60s, over-50s, healthcare workers, and younger people in vulnerable groups – though it will be restricted to people over 30.
Anecdotally there are indications some people may be reluctant to take the Moderna vaccine. This may be due to Irish stocks about to expire shortly and/or confusion about its efficacy. This follows the company’s chief executive Stéphane Bancel warning last week the Moderna jab may not be as effective against Omicron as it had been with the Delta variant.
The HSE has confirmed recipients will have no choice on what vaccine they are given.
What type of coronavirus vaccine is the Moderna jab?
It is a new kind of synthetic “mRNA vaccine” – the Pfizer/BioNTech vaccine is from the same stable. They provide excellent protection against severe illness and hospitalisation – and have played a critical role in reducing Covid-19 deaths since being approved. A downside, however, is that the Moderna version must be kept at -20 degrees.
Should people be worried about receiving a soon to be out-of-date vaccine?
|Total doses distributed to Ireland||Total doses administered in Ireland|
In short no, as they retain the ability to boost antibody production within currently approved time spans – though inevitably potency wanes over time. The Pfizer, Moderna, AstraZeneca, and Janssen (Johnson&Johnson) vaccines were put on the market with emergency use authorisation of up to six months.
This compares with a shelf life of two to three years for most vaccines and other medicines. This is an “inevitable consequence of getting the vaccines out of the door as quickly as possible”, chief scientist at the Royal Pharmaceutical Society Gino Martini told the journal BMJ.
Months later, these “emergency” expiry dates remain in force for these vaccines. For approved Covid-19 vaccines, the initial shelf lives were based on data available at the time of submission for regulatory approval.
The long-term shelf life has not been extended for any of the vaccines. A shelf life extension would require supporting evidence from relevant stability studies. Vaccine manufacturers are monitoring batches of vaccines with the aim of providing a longer shelf life; probably the usual two years.
What about the Omicron threat?
While Moderna said existing vaccines including its mRNA version will probably be less effective against the Omicron variant, most experts believe they will continue to provide significant protection against severe disease and hospitalisation. It should be stressed, however, definitive indication has yet to emerge. That will be a matter of weeks, if not days.
Moderna has confirmed it is developing an Omicron-specific booster though manufacturing the new vaccine would take time. Tens of millions of doses could be available in the first quarter of 2022, but scale-up would not happen until the second quarter – provided it is shown such boosters are required.
What is the latest indication on the benefits of mixing vaccines?
Evidence supporting a mixing of vaccine doses has hardened over recent months. A study this week shows combining a first dose of the AstraZeneca Covid-19 vaccine with a second dose of either the Moderna or the Novavax jabs results in far higher levels of neutralising antibodies and T-cells compared with two doses of the AstraZeneca jab.
This finding also has important implications for lower-income countries that have not yet completed their primary vaccination campaigns as it suggests you do not need access to mRNA vaccines – and therefore ultra-cold storage facilities – to trigger an extremely potent Covid-19 vaccine response.
The study also bolsters confidence that using the Moderna vaccine as a booster dose in people who have previously received the AstraZeneca jab should result in high levels of neutralising antibodies and T-cells.
It follows separate data published last week suggesting the Pfizer and Moderna booster jabs can dramatically strengthen the body’s immune defences.
Woman (90s) dies following single-vehicle crash in Co Clare
A woman in her 90s has died following a single-vehicle crash in Co Clare in the early hours of Tuesday.
The incident occurred at about 12.30am at Annagh, Miltown Malbay. The woman, who was the driver and sole occupant of the car involved in the crash, was pronounced dead at the scene.
Her body was removed to Limerick University Hospital, where gardaí say a postmortem will take place at a later date.
The road has been closed to facilitate an exam by Garda forensic collision investigators, and local diversions are in place.
Gardaí have appealed for witnesses – particularly road users who may have camera footage – to come forward. Anyone with information can contact Kilrush Garda station (065 908 0550), the confidential line (1800 666 111), or any Garda station.
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