From Loan-Sharks to Vulture Funds: Abuse, Vulnerability, and Judicial Control in Irish Credit Markets

This article examines the persistent problem of abusive lending practices in Ireland through a social-justice lens, arguing that structural power imbalances continue to shape borrower–lender relationships across both regulated and unregulated segments of the credit market. Despite an extensive statutory and regulatory architecture - comprising the Consumer Credit Act 1995, Central Bank oversight, and the Unfair Terms in Consumer Contracts Regulations - many consumers remain vulnerable to punitive default charges, opaque contract terms, aggressive enforcement by vulture funds, and illegal moneylending in deprived communities. Drawing on recent Irish case law, including O’Boyle, Sheehan, Breccia, Mars Capital, Pepper, Cronin, and Counihan, the article demonstrates how courts are increasingly willing to scrutinise default interest clauses, examine unfair terms ex officio, and regulate the conduct of credit purchasers and servicers. Persuasive UK jurisprudence - principally O’Brien, Etridge, First National Bank, Plevin, and Canada Square - is shown to play a crucial role in enhancing borrower protection, especially regarding undue influence, transparency failures, and unfair lending relationships. The article also explores the socio economic dynamics of illegal moneylending, highlighting how poverty, financial exclusion, and seasonal pressures - particularly around Christmas - drive many households to rely on unlicensed lenders despite criminal prohibitions. A critical evaluation of existing regulatory tools identifies significant gaps, most notably Ireland’s lack of a comprehensive “unfair relationship” test comparable to that in the UK Consumer Credit Act 1974. The article concludes that while judicial trends are increasingly protective, substantial legislative reform is required. Incorporating elements of UK and EU consumer-credit frameworks, particularly the 2023 Consumer Credit Directive, would provide a more coherent and substantive model for safeguarding vulnerable borrowers in Ireland’s evolving credit landscape.