FINES OF UP TO €5M FOR FINANCIAL FIRMS WHO BREAK CONSUMER PROTECTION CODE - A revised Consumer Protection Code, published today by the Central Bank, sets out to improve the consumer's situation when dealing with financial institutions. Among its aims is improved protection for vulnerable consumers and the imposition of stricter rules to prevent borrowers in arrears from being harassed. It will also change the way mortgages are approved by banks. The new code sees a move away from principles based regulation, to rules that have to be followed.
The Central Bank's director of consumer protection, Bernard Sheridan, says the new code - which will come into effect from next January - includes additional protections for vulnerable consumers and those having trouble paying back loans other than mortgages.
He says the code was open to public consultation over the past year and the main points of concern from the public concentrated on more protection for vulnerable borrowers and the handling of arrears. On arrears, Mr Sheridan says that borrowers are being urged to contract the lender when they encounter repayment difficulties, while lenders now have to try and establish why people have fallen into arrears. The code also limits the number of unsolicited communications with a consumer in arrears to three a month so as to prevent harassment. The code also bans banks from accepting self-certified declarations of income from consumers.
As the code has a statutory basis, Mr Sheridan says the Central Bank can impose sanctions on those who break it. These include fines up to a maximum of €5m. He added that the Central Bank will monitor all the financial firms to make sure that they are complying with the new tougher requirements.
***
MORNING BRIEFS - Drinks group C&C, the maker of Bulmers cider, said this morning that its CEO John Dunsmore is stepping down at the end of the year. He will be succeeded by Stephen Glancey, the C&C chief operating officer and finance director. The company's results for the first six months of the financial year show that operating profits rose by 7.8% to €67.4m while earnings per share were up 7.1% to 16.5 cent. C&C's revenue was €399.3m euro in the six month period. It reported a volume decline of 3.5% in Bulmers in an Irish market that remains challenging.
***On the currency markets, the euro is trading at $1.3810 cents and 87.6 pence sterling.
