The Central Bank is introducing "robust" new requirements to the Consumer Protection Code today in relation to debt management companies.
The new rules are being introduced following the completion of a public consultation process and the Central Bank said they will strengthen protections for consumers using such companies.
Bernard Sheridan, the Director of Consumer Protection at the Central Bank, said the new regulations will govern how individuals are assessed, the nature of the advice given to them and will also prohibit certain practices.
Mr Sheridan said these firms will now be banned from arranging additional debt for people in order to pay the fees for their services.
They will also be prohibited from paying third parties for information on individuals, which it is hoped will prevent people who previously had no relationship with these companies from being contacted.
Legislation was introduced last year which put the Central Bank in charge of regulating this sector. Up until then it had been unregulated.
Mr Sheridan noted that the debt management firms in question are different from bill payment firms, where individuals give part of their salary to a company every month in order to pay bills.
Mr Sheridan noted that the debt management firms in question are different from bill payment firms, where individuals give part of their salary to a company every month in order to pay bills.
An information booklet for consumers explaining these new consumer protections has also been published.
On the issue of the Central Bank's proposals to introduce a rule requiring a 20% deposit for home buyers, Mr Sheridan said the bank would be considering all responses to the plans.
He said the Troika's views would be an important part of the consultation process but stressed that its views are just one response that the bank will be considering.
