Nash welcomes revised consumer protection code from Central Bank
- Steps on mortgage switching will give consumers more transparency
- Concerns over bank branch closure process will not be quelled
- Clarity on responsibilities of ‘finfluencers’ crucial
Labour Party Finance spokesperson Ged Nash TD has given a broad welcome to the Central Bank’s revised Consumer Protection Code which was published today.
He said:
“Confidence and trust must be restored in our financial institutions after the financial crash, the tracker mortgage and insurance dual-pricing scandals.
“Our society and economy, and too many individual citizens and businesses have paid a heavy price for the actions of some in a sector that has felt accountability did not apply to them.
“This new Code has the potential to change the culture and improve the practices of all regulated financial institutions and to ensure that they are well-run and treat all consumers fairly.
“Mortgage interest rates in Ireland have historically been among the highest in Europe. In a concentrated market where more competition needs to be encouraged, the plans set out in the new Code will make it easier for consumers to make informed and better decisions where they are considering switching their mortgages in order to access better deals.
“Labour’s position on bank branch closures is very clear. There must be local social and economic assessments of the impact of any proposed closures on a community and a clear function for the regulator to prevent or stall closures where there is a public interest issue.
“The revised Code introduces some welcome additional steps a bank will have to go through in the case of a planned branch closure. However, the new measures appear to be limited to some enhancements to the pre-closure process and the requirement on notifications, and to a pre-closure assessment of the impact on customers, but not communities.
“In addition, the need for a post-closure assessment is a new departure. However, outside of a vague notion that problems when identified after closure will need to addressed by the bank, it seems to me that the Central Bank will continue to be more or less silent and ineffectual on preventing closures at all, and on the wider social impact of the erosion of in-person branch services in parts of the country. This is very disappointing and is a missed opportunity.”
Deputy Nash added:
“Along with improvements announced in relation to digital services, the approach to vulnerable customers and ‘greenwashing’ I also welcome the increased clarity the updated Code has introduced in clear black and white for so-called ‘finfluencers’ who are paid to flog financial products online.
“They, and the regulated services who are paying them must follow the same advertising and transparency rules that apply to every other advertising medium and this is a welcome restatement of the need for compliance and responsible behaviour by finfluencers online.”