Brendan Griffin (Kerry South, Fine Gael)
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94. To ask the Minister for Finance his views on correspondence (details supplied) regarding the treatment of a customer of a financial institution; and if he will make a statement on the matter. [24438/15]

Michael Noonan (Limerick City, Fine Gael)
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I met with senior management of Ireland's six main mortgage lenders on 19th and 21st May to discuss the issue of mortgage interest rates. The meetings focused on the mortgage market and specifically the comparatively high standard variable rates currently being charged by the banks.

I outlined my view, that Standard Variable Rates being charged in the Irish market are too high.  There was agreement from all lenders that customers should have access to more competitive mortgage products as per my recommendation.

The banks agreed to review their rates and products and, by the beginning of July, to have simple options to reduce monthly mortgage payments for SVR customers. Some of the potential products include lower standard variable rates for existing and new customers, competitive fixed rate products and lower variable rates taking account of loan to value for new and existing customers.

In addition to the issue of rates I also outlined the need for greater competition in the market and the need for a more active and well-resourced campaign by the individual banks. This should focus on promoting awareness of their best offering and how easy it is for customers to take up new products and switch between different institutions if they wish to avail of better rates.

In relation to switching, I understand that the Competition and Consumer Protection Commission is planning to provide more information to consumers to encourage switching. Although I did not meet the financial institution to which the Deputy refers, I would hope that increased competition will impact on all institutions. I expect that if financial institutions are convinced that there is a threat that they will lose these customers, they will reduce the rates that they currently charge existing customers. The CCPC website is a valuable source of information on the rates charged by various financial institutions.

The financial institution to whom the Deputy refers is regulated by the Central Bank and the borrower may complain to the Financial Services Ombudsman if he is unable to resolve the complaint to his satisfaction with the institution. The Financial Services Ombudsman was set up to adjudicate on unresolved disputes between complainants and financial service providers in an independent and impartial manner.