Michael McGrath (Cork South Central, Fianna Fail)
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45. To ask the Minister for Finance when compensation payments to persons who were mis-sold payment protection insurance will commence; the length of time he expects the process to take; and if he will make a statement on the matter. [24959/13]

Michael McGrath (Cork South Central, Fianna Fail)
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49. To ask the Minister for Finance the number of payment protection insurance policies sold by entities regulated by the Central Bank of Ireland since mid-2007 and currently subject to the ongoing investigation by the CBI into the sale of PPI policies; if he will provide details of the current stage of the investigation; when he expects it to be concluded; the restitution options for customers who are found to have been mis-sold a PPI policy; and if he will make a statement on the matter. [24969/13]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 45 and 49 together.

I have been advised by the Central Bank that it is conducting an on-going investigation into the sale of Payment Protection Insurance (PPI) by firms from July 2007. In September 2012 the Central Bank broadened its investigation to include a number of other banks and credit institutions. Approximately 340,000 PPI policies were sold by bank/credit institutions since 2007.

The Central Bank issued an update on its on-going investigation into the sales of Payment Protection Insurance policies on 17 May 2013. Ten firms are currently undertaking reviews of their Payment Protection Insurance sales. At the request of the Bank, the firms previously informed all their customers included in the PPI sales review of their intention to provide updates to them as the review progresses.

The firms have commenced writing to their customers who purchased PPI in July 2007 to inform them of the outcome of the review as it relates to their situation. Approximately 13,000 customers will receive letters over the coming week. The Central Bank is advising customers who receive a letter and have any questions, to contact their bank or credit institution directly.

It is too early at this stage to comment on the number of consumers that will receive refunds or the total amount to be refunded. Some firms may be able to indicate to their July 2007 customers how much they will be restituted but the majority will not, until customers have decided if they wish to have restitution, or to keep the policy subject to further suitability assessment. The Central Bank will make a comprehensive statement at the conclusion of the overall process.

Throughout 2013, firms will continue to conduct the review and will directly contact all other PPI customers included in the review with the outcome of the on-going review. The Central Bank will continue to require firms to take an orderly, co-ordinated and consistent approach to the review and will monitor progress on an on-going basis with the firms involved, and with the independent third party overseers who were appointed at the request of the Central Bank.