Pat Deering (Carlow-Kilkenny, Fine Gael)
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To ask the Minister for Finance the reason persons borrowing money from banking institutions are liable for the lenders solicitor's fee; and his plans to review same. [44110/12]

Michael Noonan (Limerick City, Fine Gael)
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I, as Minister for Finance have no statutory role in relation the issues raised by the Deputy. It is a commercial matter for the bank concerned. However, I have been advised by the Central Bank that, under the Consumer Protection Code, a regulated entity must act honestly, fairly and professionally in the best interests of its customers and the integrity of the market. Furthermore, the Code requires a regulated entity to make full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer and, in this regard, provision 4.54 of the Code states that:

"Prior to providing a product or service to a consumer, a regulated entity must:

a) provide the consumer, on paper or another durable medium, with a breakdown of all charges, including third party charges, which will be passed on to the consumer; and

b) where such charges cannot be ascertained in advance, notify the consumer that such charges will be levied as part of the transaction.

Section 149 of the Consumer Credit Act 1995, as amended, requires a credit institution to notify the Central Bank of every proposal to increase a previously notified charge or to impose any charge in relation to the provision of a service to a customer that has not been previously notified to the Central Bank. However, third party charges such as legal fees which are being passed on to a customer are not subject to the provisions of Section 149 of the Act.