The Act of 1995 is amended by the insertion of the following section after section 98:

''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