Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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This is an area of interest because a number of people have contacted me and I have tried to help them put together a complaint where a service has not been delivered. PayPal is one of the companies that is very difficult to deal with. If one’s account is affected, due to no fault of one's own, through fraud at another end, one cannot access PayPal in any shape or form. People try to get an appeals mechanism in place. Reference was made to companies attempting to resolve cases within 40 days. In the case of PayPal and probably other companies a reply is made outlining an initial finding and stating that more time is required. When the complainant offers more time that is usually the last he or she hears about the case, as in the two cases with which I am familiar. The consequence is that someone with an online business has his or her account suspended. There must be a way to ensure that such consumers can complain properly or appeal to the Financial Services Ombudsman if the complaints system is not working.

Reference was made to a number of areas in which legislation must be tightened up. The committee could help to encourage the Minister for Finance to look at that.

As individuals we can see if we can try to ensure that where there are faults in financial legislation, as we have highlighted today, we can examine them. This should happen particularly with regard to consumer protection, which is vital. I was elected in 2002 and it struck me at the time that a credit company operated in my area, and I complained about the 195% interest being charged. There was a different regulator at the time and when I inquired about this, I was told that although it came within its remit, there was no entitlement to restrict interest rates charged by companies. The regulator would have ensured they operated legally nonetheless. No institution should be entitled, with a licence from the State, to charge exorbitant annual percentage rates over 30%. Some of these companies charge over 200%. Given where we have come from and the indebtedness of our society, the issue must be addressed.

It is useful for others to raise this matter, as the more voices we hear, the more this side of financial regulation will be used to limit what interest can be charged. Institutions should not be able to get away with some of the costs not just in interest rates, but also in collection rates. If a company is forced to reduce interest rates, it may increase collection rates to make up the 200% rate. Some of these operations have little more than signs and one could have difficulty in accessing the company or complaining about a lack of service given to a consumer. I will look with interest at how this is received and whether we could get the Minister for Finance, in particular, to take on board these issues. Valid questions and proposals have been raised, and they relate to some of the problems that led us to the current crisis. There was a lack of regulation and oversight, and the more of this available to a consumer, the less likely we will end up with people struggling. Part of our job is to ensure all ombudsmen have the required tools to deliver for the consumer and citizen, so we should take this report on board.