98A. (1) A high cost credit provider shall not charge interest, under a high cost credit agreement, at a rate which exceeds a maximum rate of interest—

(a) prescribed under this section, and

(b) applicable to the agreement.

(2) The Minister shall prescribe the following:

(a) in respect of a loan (other than a running account) under a high cost credit agreement—

(i) the maximum rate of simple interest chargeable per week (being a rate less than or equal to one per cent), and

(ii) the maximum rate of simple interest chargeable per year (being a rate less than or equal to 48 per cent);

(b) in respect of a running account under a high cost credit agreement, the maximum rate of nominal monthly interest chargeable on an outstanding balance (being a rate less than or equal to 2.83 per cent).

(3) A maximum rate of interest prescribed under this section shall apply to a high cost credit agreement entered into—

(a) after the date on which the regulations, by which the rate is prescribed, come into operation, and

(b) on or before the date, if any, on which the regulations next made under this section come into operation.

(4) The Minister shall consult with the Bank before making regulations under this section.

(5) The Minister shall have regard to the following when making regulations under this section:

(a) the impact of the regulations on competition in the high cost credit sector;

(b) the impact of the regulations on the supply of credit in the high cost credit sector;

(c) the average rates of interest offered to customers in the high cost credit sector and any trends in such interest rates;

(d) 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.

(6) In subsection (5)(d), "financial inclusion" means affordable, timely and adequate access to a range of regulated financial products and services by all segments of society.

(7) The Bank shall, when consulted in accordance with subsection (4), prepare a report assessing the possible effects, on the matters referred to in subsection (5), of the rates proposed to be prescribed by the Minister.

(8) The Bank shall, within 3 years of the coming into operation of the Consumer Credit (Amendment) Act 2022, prepare a report assessing the impact of the rates of interest prescribed under this section on the matters referred to in subsection (5).]