New financial regulator rules to stop banks offering loans to customers who have not asked for them.
Mary O'Dea Consumer Director at the Irish Financial Services Regulatory Authority (IFSRA) outlines the measures within the code to make life better for consumers of financial products.
The current practice of banks to increase credit card limits when a customer has not sought them has been criticised as exploiting vulnerable consumers.
People end up spending more than they can repay.
There are also new rules for companies that consolidate people's loans into their mortgages.
Spokesperson for the Irish Bankers Federation Emer O’Rourke welcomes the move and says that the banking industry must guarantee that the consumer is to the forefront of its mind.
The Money Advice and Budgeting Service (MABS) helps members of the public who are struggling with debt. Michael Culloty of MABS explains that many of these have tried to borrow their way out of a problem, and financial products such as high credit card limits tempt them to go down this route.
Companies which fail to comply with the new measures face a fine of up to five million euro.
An RTÉ News report broadcast on 12 December 2005. The reporter is David Murphy.
