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The Department of Social Welfare in Ireland, (now called the Department of Social & Family Affairs) has been actively involved in activities to combat moneylending since the publication in 1988 of a report of the Combat Poverty Agency entitled "Moneylending and Low Income Families" which was commissioned by the then Minister for Social Welfare Dr. Michael Woods T.D.
The Irish Government announced the establishment of a revolving loan guarantee fund as part of its Action Plan to deal with the problems of moneylending. The Society of St. Vincent de Paul had the day-to-day responsibility for the operation of this fund.
The 1992 Budget provided a special allocation of 350,000 ECU to establish 5 pilot projects aimed at building a new and more comprehensive approach to combat the problems faced by people who borrow from moneylenders. These projects were officially launched on September 22, 1992 and became known as MABS (Money Advice and Budgeting Service).
A sum of 670,000 ECU was provided to extend the service. This allowed for the continuation of the existing 5 centres and the provision of an additional 8 centres.
The Budget allocation was increased to 1M ECU and 25 centres were funded. A National Co-ordinator was appointed to promote the development of the service.
The Budget allocation was increased each year. By 1997 the allocation had reached 2.9M ECU and almost 50 centres are now in place. During this period, the service was consolidated, the structures evolved and issues of policy on consumer debt came to the fore.
MABS
held its first Annual Conference which was attended by
management, government officials, legal experts, creditors,
various services and agencies and a number of delegates from
outside the country. As the service developed nationally, an
overall profile of clients emerged; 75% of users of the
service are recipients of welfare payments while the majority
of the remaining 25% are low-income
families/individuals.
A broad range of problems on consumer debt are now presented
to Money Advice staff. Creditors being dealt with include
utilities (Electricity, gas, phone), rents, mortgages,
banks/building societies, credit cards, finance houses, court
fines, credit unions, catalogue sales, moneylenders
etc.
A more recent development has been a co-ordinated approach
to dealing with creditors which has involved consultations,
at national level, with a number of the main creditors.
MABS (Ireland) hosted the European Conference of CDN (Consumer Debt Net). This looked at debt issues as they affect consumers throughout the EU. Delegates from most of the EU countries attended this conference which was held in Malahide, Dublin.
A comprehensive evaluation of the service was carried out at national level. A number of sections of this report are now available and are being used to help shape future developments of the service.
A National Conference of MABS was held in Tralee. The themes of this conference included "Building Bridges between MABS and Creditors"; "Debt problems as they relate to Government Departments, Statutory Bodies and Voluntary Groups"; "MABS and Community Education". The Minister for Social, Community & Family Affairs, Mr.Dermot Ahearn T.D. announced that he intends to establish MABS on a statutory basis.
The first steps are taken to establish a national forum for management groups.
An extra 1.27M euro was allocated in the Budget for the development of the service.
The death took place in Cork of Mr. Brendan Roche who is acknowledged to be the founder of MABS. Through his experience in the Lough Credit Union in Cork, he developed the idea of Special Accounts System and his vision of an independent service to work with those who experienced problems of debt.
Three Regional Development Officers are appointed on a pilot basis.
The National Forum for Management Groups was established.
MABS received an additional €0.64 million in the budget.
The National Forum for Management Groups held its first national meeting in Tullamore.
The pilot project for 3 Regional Development Officers ceased. It was subsequently planned to put in place a 5 person National Team
The new national company MABS NDL was established to provide support services on a national basis. It was named MABS National Development Ltd. In September 2004 five staff members were employed to form a team to work on a national basis.
