In general, the CCPC opposes the introduction of capping interest rates. Such caps mostly do not achieve the intended outcomes, but instead serve to reduce competition with the cap effectively becoming a target. However, the CCPC agreed with the interest rate cap on high cost credit, as set out in the Consumer Credit (Amendment) Act 2022, on the basis that it believed that the potential for mitigating consumer detriment, particularly for vulnerable consumers, posed by the possibility of increased rates in the future had merit.
The CCPC recommended that the cap on high cost credit be subject to regular review by the Central Bank of Ireland and this provision is within the 2022 Act.