Jack Wall (Kildare South, Labour)
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Question 148: To ask the Minister for Finance if he is satisfied that the Financial Regulator is doing enough to protect consumers in relation to credit card debt in view of the high interest charges; and if he will make a statement on the matter. [3889/07]

Seán Ryan (Dublin North, Labour)
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Question 163: To ask the Minister for Finance his views on the rapid increase in credit card debt in the past three years from €1.6 billion to €2.6 billion or by 56% even though the number of credit cards in circulation has only increased by 10%; and if he will make a statement on the matter. [3888/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 148 and 163 together.

The Financial Regulator spends significant time and resources informing consumers about the potential risks of credit cards. Publications including credit card cost surveys are available to help consumers choose the card that suits their needs. However, guidance from the Financial Regulator recommends that consumers take on the right type of credit for the right purpose; credit cards are not suitable for long-term debt as the rates are far higher than other forms of credit. The Financial Regulator also issues information to help people who have problems with credit card debt. This information is available through its publications, help-line and website.

All credit card providers must comply with the Regulator's Consumer Protection Code, which states that financial services providers must act in the customers' best interests and only provide financial products that are suitable for the consumer. In addition, there are some specific rules with regard to interest rates and credit cards limits. When a credit institution is changing its interest rates, it must state the effective date of the new rate. It must also update the interest rate details on its information services as soon as the change comes into effect. With regard to credit card limits, they cannot be increased unless requested by the consumer.

The Deputy may wish to note that credit card debt represents less than 2% of personal sector credit, and less than 1% of overall private sector credit (PSC) and is one of the slowest growing components of PSC. Credit card data refers to debt outstanding on all credit cards at end-month and includes balances that may be paid in full at the payment due date. The increase in the number of cards issued and the amount of debt outstanding is in line with a general trend of increased market penetration in the EU and a move towards electronic retail payment methods.