People borrowing from moneylenders have been warned to be clear about their rights to avoid falling into excessive debt.
The advice comes from Flac, the Free Legal Advice Centres, which has published a booklet setting out the legal rights of borrowers who use moneylenders.
Separately, Minister for Social and Family Affairs Martin Cullen will today remind people with post-Christmas debt that advice and assistance is available from the Money Advice and Budgeting Service. About 300,000 people borrow money from licensed moneylenders each year, and the new year is traditionally a period when many suffer debt problems arising from high spending over Christmas.
Flac director general Noeline Blackwell said: "We are publishing this guide to remind those who borrow from licensed moneylenders that they do have rights which are protected by law.
"Money borrowed from moneylenders is very expensive, and borrowers should be very clear about their rights to ensure that moneylenders do not overstep the legal limits."
Although borrowing from moneylenders is costly, it is regulated and moneylenders can lose their licences if they overstep the rules. Practices that are tolerated with some creditors, such as giving top-up loans to clear an existing loan, are not permitted with moneylenders.
Up-front arrangement and administration fees, common in subprime lending mortgages, are prohibited in moneylending agreements.
Paul Joyce, Flac's policy researcher, acknowledged that many borrowers see moneylending as convenient, as they can make repayments on the doorstep and few questions are asked about employment or credit status.
The booklet, Moneylending and the Law, is available from Flac's office at 13, Lower Dorset Street, Dublin 1, or from its website www.flac.ie