Peter Mathews (Dublin South, Fine Gael)
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To ask the Minister for Jobs, Enterprise and Innovation if he will introduce legislation to prevent companies charging a large administration charge for customers who do not pay by direct debit; and if he will make a statement on the matter. [38535/12]

Richard Bruton (Dublin North Central, Fine Gael)
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Article 19 of Directive 2011/83/EU on Consumer Rights seeks to prevent businesses from imposing excessive payment charges. It provides that:

Member States shall prohibit traders from charging consumers in respect of the use of a given means of payment fees that exceed the cost borne by the trader for the use of such means.

While Member States are required to transpose the Directive into national law by December 2013, I have decided that Article 19 should be given early effect in Ireland. My Department has recently published a consultation paper on Article 19 and a related provision on additional payments at Article 22 of the Directive with a view to enacting both provisions by end 2012 or early 2013. The consultation paper can be accessed on the Department’s website (www.djei.ie).

While Article 19 applies to cases where a business imposes a payment charge on consumers who pay by methods other than direct debit, it has been clarified by the European Commission that it does not cover cases where a business offers a discount to consumers who pay by direct debit. Prohibiting traders from offering discounts for payments made by direct debit or other means would appear to be precluded in any event by Article 52(3) of Directive 2007/64/EC on Payment Services in the Internal Market; the Directive was given effect in Ireland by the European Communities (Payment Services) Regulations 2009 (S.I. 383 of 2009). Article 52(3) empowers Member States to forbid or limit payment charges subject to specified conditions, but gives no such right in respect of price reductions for the use of a particular payment method.