Michael D Higgins (Galway West, Labour)
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Question 134: To ask the Minister for Finance if the Financial Regulator has conducted a study into the penalty charges charged to consumers here by credit card companies; if there are proposals to regulate and limit these charges as has been enforced by the Office of Fair Trading in the UK; and if he will make a statement on the matter. [39242/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Credit card companies that fall within the definition of 'credit institutions' for the purposes of the Consumer Credit Act, 1995, must notify the Financial Regulator of any proposal to introduce or increase charges for services as defined in Section 149 of the Act. This encompasses any penalty or surcharge interest imposed in respect of arrears on a credit agreement or a loan, including penalty fees charged to consumers by credit card companies as referred to in the Deputy's question. In considering each charging proposal, the Financial Regulator assesses it against the criteria set down in the Act and either approves the charge at the notified level, approves it at a lower level or rejects the proposal. The criteria set out in the Act are: the promotion of fair competition; the statement of commercial justification; a credit institution passing any costs on to its customers; and the effect on customers of any proposal to impose or change any charge in relation to the provision of such service.

The Financial Regulator continually monitors developments in the industry, both domestically and internationally, with regard to the provision of financial services. The Financial Regulator publishes a Credit Card Cost Survey, which is available on its website or from its offices in College Green, that gives details of the Late Payment Fees, Over Credit Limit Fees and Unpaid Items Fees imposed by credit card providers. In addition, the Financial Regulator's new Consumer Protection Code requires all institutions governed by this Code to make full disclosure of all material information, including all charges.