John Halligan (Waterford, Independent)
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Question 141: To ask the Minister for Finance if he will compel those banks that are now in State ownership to repay the payment protection insurance which they wrongly sold alongside personal loans, credit cards and mortgages to all those persons who are self-employed, unemployed, seasonal workers or unable to work due to illness; if he will order the banks to conduct a cost analysis into the amount this payout is going to cost the taxpayer; the time frame for the completion of this analysis; and if he will make a statement on the matter. [11790/11]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank of Ireland's Consumer Protection Code requires that a regulated entity must ensure that in all its dealings with customers and within the context of its authorisation it, inter alia, must:

· Act honestly, fairly and professionally and in the best interests of its customers and the integrity of the market;

· Act with due skill, care and diligence in the best interests of its customers;

· Not recklessly, negligently or deliberately mislead a customer as to the real or perceived advantages or disadvantages of any product or service.

Any breach of the Consumer Protection Code may be considered under the Central Bank's Administrative Sanctions Procedure. If a consumer feels that they have been improperly treated or has grounds for complaint for some other reason, they may make a complaint to the institution directly. It the complainant feels the issue has not been addressed to their satisfaction they may refer the complaint to the Financial Services Ombudsman. The Ombudsman will adjudicate on the complaint on the basis of the regulatory requirements on the firm.

The Consumer Protection Division of the Central Bank is conducting a themed inspection of Payment Protection Insurance (PPI) policies sold to consumers who would not have been eligible to make an unemployment/redundancy claim under the policy and the information should have been known or gathered at the time of the sale. This will be achieved by reviewing both the claim file for declined claims alongside the relevant sale file for the policy. Feedback will be issued in the form of a letter to the industry following the review, together with suggested proposed changes, if any are identified, to current practices. In addition, if it is necessary and if it is found that firms are not in compliance, the appropriate regulatory action will be taken.