Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 127: To ask the Minister for Finance if his attention has been drawn to the findings of the Financial Regulator which found that 41% of bank branches were not adhering to the Irish Bankers Federation Voluntary Switching Code; if he will introduce legislation to put the code on a statutory basis in order that it is adhered to by financial institutions; and if he will make a statement on the matter. [24410/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Irish Banking Federation Personal Voluntary Switching Code was introduced in 2005 on a voluntary basis. It is aimed at assisting customers in switching their personal current or savings account and making the process of switching as smooth and easy as possible.

In March 2009, the Financial Regulator (FR) published the findings of its mystery shopping exercise, which examined the ease of switching personal accounts between banks. This exercise was carried out in November 2008 as part of the FR's role in monitoring compliance with the Irish Banking Federation (IBF) Voluntary Personal Switching Code. Fifty-one branches of seven banks were visited by Financial Regulator staff, posing as customers wishing to switch their main current account from another bank. The mystery shopper rated each branch to be either 'satisfactory' or 'unsatisfactory', taking into consideration:

· The accuracy of the information provided,

· The helpfulness of the bank assistant,

· The bank assistant's awareness of the switching process, and

· The provision of a switching pack.

The findings from this exercise show that only 59% of branches visited were found to be 'satisfactory'. The main reasons for the other 41% of branches being deemed 'unsatisfactory' were:

· In some cases, the mystery shopper was not encouraged to use the switching process by virtue of the information provided,

· Staff, in some branches, were unable to provide sufficient information on the switching process,

· In some cases, the mystery shopper was actively discouraged from using the switching process, and

· Switching packs were not referred to or provided in some branches.

The Financial Regulator has asked the IBF to consider the findings of this exercise in its ongoing development of the switching process and to revert with its proposals for improving the service to its customers. The IBF is expected to actively engage with its members on this issue, particularly in respect to staff training and effective monitoring of compliance within branches. The FR will continue to carry out mystery shopping exercises to assess the ease of switching.

Notwithstanding the findings of this exercise the Deputy may wish to note that, up to April 2009, the IBF has facilitated the switching of approximately 61,000 personal accounts.

Furthermore, the European Banking Industry Committee has drawn up voluntary common principles regarding switching of accounts, which draw upon the IBF's Code. These principles have been accepted by the EU Commission and are due to be implemented by November this year.

Accordingly, it is my view that the Irish Banking Federation Personal Voluntary Switching Code does not need to be put on a statutory basis.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 128: To ask the Minister for Finance the amount of the €167 million in overcharging by financial institutions recorded in the 2006 report of the Financial Regulator that has been repaid to customers; and if he will make a statement on the matter. [24411/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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While reimbursement of overcharging by financial institutions is primarily a matter for the institutions concerned, I understand from the Financial Regulator (FR) that the bulk of this has been reimbursed.

My Department has been informed by the FR that the reimbursement process is proceeding in accordance with the FR's General Principles in relation to reimbursement as set out on page 50 of its Annual Report 2006.