The Central Bank has published a consultation paper on proposed ways to review the Consumer Protection Code in order to strengthen consumer protection measures.
The review is open to submissions until January 10, and the final code will be published in the middle of next year.
Read the full report here
The original code was introduced three years ago when consumers and financial institutions were in a very different situation. In updating the code, the Central Bank is moving the balance away from principles towards more rules.
It is proposed that more detailed fact-finding about the customer should highlight those who are vulnerable, and therefore avoid the mis-selling of products to them. Vulnerable customers could include people with a low income, little English, those over or near retirement age, or those with a large lump sum to invest who have very little investment experience.
When it comes to debt and arrears, it is proposed that the new code will formalise stress testing for interest rates hikes; do more to determine the suitability and affordability of loans; and - when a consumer is in difficulty - limit the amount of contact the lender can have with the customer.
It will also impose deadlines on how long a financial institution has to deal with errors and overcharging; and general insurance brokers could also have to disclose how much commission they are being paid.
The Central Bank says errors made by financial firms should be rectified within six months, and errors not rectified within 30 days must be reported to the bank.
