A review by the Central Bank has found that, of the about 1.3 million credit card accounts in Ireland, over 400,000 are on Annual Percentage Rate (APRs) above 23%.
Since 2022, under legislation, new credit card accounts cannot have an APR of greater than 23%.
The APR is the total cost of borrowing for a year, made up of a combination of interest and fees.
The Central Bank said that credit card customers may not be aware that they could get a cheaper rate with another product or another provider.
The review also identified other issues including poor handling of customer complaints, issues in how credit cards are marketed to customers, and limited supports provided to customers in financial difficulty.
The Central Bank said it is following up directly with firms on these issues to ensure that appropriate actions are taken to address the findings of the review, including making customers on these higher interest rates aware of their options.
Colm Kincaid, the director of Consumer Protection at the Central Bank, said the bank had completed the review in the context of its work to ensure firms are supporting consumers in the face of cost of living challenges.
"On finding so many customers are on historic high rates, we have told relevant lenders to take action to make customers aware where they have these higher rate accounts, and to support them to consider options available to them if they wish to make a change," Mr Kincaid said.
He advised that taking some simple actions could result in real savings for consumers.
"If you are a credit card customer, there is no need to wait until you are contacted by your provider. Check your credit card statement now and see if your firm, or another, can offer you a better rate," he said.
"This is the biggest spending time of the year, and credit cards are an important part of the market in offering consumers payment choices – but don't leave yourself paying more than you have to," he added.
