Brendan Howlin (Wexford, Labour)
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Question 66: To ask the Minister for Finance if he has satisfied himself that there are sufficient procedures in place to provide for the adequate supervision of banks, in view of the continuing disclosures of incidences of overcharging by banks and financial institutions; and if he will make a statement on the matter. [13346/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Central Bank and Financial Services Authority of Ireland Act 2003 established the Irish Financial Services Regulatory Authority. The post of consumer director is specifically provided for within the structure of the financial regulator established under that Act. The director exercises important consumer protection powers under legislation.

The Central Bank and Financial Services Authority of Ireland Act 2004 complemented the 2003 Act and further enhanced the financial regulator's powers and strengthened the regulatory environment. This Act conferred new powers on the financial regulator to impose stiff administrative penalties, to be applied where there is a breach of: any financial services legislation; codes of conduct issued by the regulator; any condition, requirement or direction imposed under legislation or codes.

The Act provided for an enhanced structure for dealing with consumers who have complaints about financial institutions and also provides consumer and industry consultative panels for the financial regulator. The consumer panel will have an important role in ensuring that the regulator is correctly reflecting the interests of consumers in its protective — issue of codes of conduct — and educational — information pamphlets and so forth — roles. The Act also established a single statutory Financial Services Ombudsman for all financial services firms. The ombudsman's office began operations on 1 April 2005. The ombudsman has significant powers of investigation, mediation and adjudication and may order redress in appropriate circumstances.

The Consumer Credit Act 1995, which commenced in May 1996, regulates the provision of consumer credit. It prescribes inter alia the form and content of credit agreements for consumer lending, including in the case of loans secured on the family home a requirement to warn the borrower about the risk of losing their home. The Act also provides for the regulation of fees and charges imposed by credit institutions.

In view of the legislative measures outlined above, I am satisfied that a robust regulatory structure for the protection of consumers is now in place and that it continues to function satisfactorily. This structure is proving effective in detecting overcharging issues in the first instance and in working closely with the relevant financial institutions to ensure that the customers affected are reimbursed and the systems required to avoid a recurrence are put in place.