Mary Upton (Dublin South Central, Labour)
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Question 123: To ask the Minister for Enterprise, Trade and Employment the reason a company (details supplied) imposes a penalty charge on customers who cannot or do not choose to pay their bill by direct debit; and if he will make a statement on the matter. [8266/08]

Micheál Martin (Cork South Central, Fianna Fail)
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The Deputy's question refers to the practice of the company concerned imposing a charge on customers who pay their bills by means other than direct debit. I note the concerns expressed by a number of commentators that this charge could impact disproportionately on certain groups of vulnerable consumers.

I understand that the National Consumer Agency (NCA) received a number of complaints from consumers as far back as November 2006 in relation to the intention of the company concerned to impose a charge on consumers who pay their bills after the due date and to introduce a charge on customers who pay their bills by other than direct debit. I am advised that the Agency subsequently met with the senior management of the company concerned on a number of occasions. Arising from these discussions the company concerned undertook to only impose the late payment charge following a written reminder to the customer and notification of the application of the charge should the customer's bill not be cleared within a specified timeframe. With regard to the charge for paying other than by direct debit, I am advised that this charge only applies to new customers of the company recruited after 1st April 2007, and that such customers are made fully aware before signing up for the company's services that a charge will be imposed if they do not choose to pay their bill by direct debit.

I understand that the National Consumer Agency continues to meet with the company concerned in relation to a range of issues.