Brendan Griffin (Kerry South, Fine Gael)
Link to this: Individually | In context

Question 102: To ask the Minister for Finance the grievance procedures that exist for customers of State supported banks or financial institutions; his plans for reviewing existing grievance procedures; and if he will make a statement on the matter. [12777/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The Central Bank's Consumer Protection Code (the Code) is applicable to all entities which the Central Bank regulates (regulated entities). These entities include State supported banks and financial institutions. The Code requires, among other things, that a regulated entity must ensure that in all its dealings with customers and within the context of its authorisation it acts:-

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

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

Any breach of the Code may be considered under the Central Bank's Administrative Sanctions Procedure.

If the customer falls within the definition of "consumer" for the purposes of the Code and he or she feels that he or she has been improperly treated, or that he or she has grounds for complaint for some other reason, then a complaint should be made directly to the regulated entity. If the complaint has not been addressed to his or her satisfaction, the person may refer the complaint to the Financial Services Ombudsman, who deals with individual consumer complaints. The Ombudsman will adjudicate on the complaint on the basis of the regulatory requirements on the regulated entity.

For the purposes of the Code a "consumer" is any of the following:-

a) a natural person acting outside his or her business, trade or profession,

b) a person or group of persons but not an incorporated body with an annual turnover in excess of €3 million,

c) incorporated bodies having an annual turnover of €3 million or less in the previous financial year,

d) a member of a credit union.

The Central Bank is currently undertaking a review of the Code and issued a Consultation Paper last October. I understand that, as part of this review, a second consultation paper is to be published at the end of June.