Eamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

Question 167: To ask the Minister for Finance when he expects the introduction of a prohibition on credit card providers from raising credit limits except at the request of the customer; the reasons for the delay of same; and the interim measures that have been taken to raise consumer awareness and reduce vulnerability to this practice. [13619/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

The Financial Regulator issued its Consumer Protection Code in August 2006. The Code comprises a number of general principles and some more detailed requirements specific to particular financial sectors. The general principles came into effect immediately. Since the introduction of the Code the Financial Regulator has been engaged in a programme to roll out the Code to industry.

One of the requirements of the Code states that:

"A regulated entity may only increase a consumer's credit card limit following a request from the consumer."

The provision in question will come into effect on 1 July 2007.

Since the Financial Regulator was established, it has been working to inform consumers about the risks of credit card debt. On 29 March this year, it commenced a new credit card campaign, highlighting the implications of using credit cards to meet longer term borrowing requirements. The Financial Regulator has also produced a booklet on credit cards and has conducted and published the results of a number of credit card cost surveys. These surveys compare the interest rates and charges on cards in the Irish market and provide consumers with the information to select the card that suits them best.

As part of a wider project to improve the transparency of financial products, the Financial Regulator is currently examining credit card statements to assess the adequacy and usefulness of the information contained in them.