Pearse Doherty (Donegal, Sinn Fein)
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96. To ask the Minister for Finance the date on which the last life loan products were issued here; if his Department or the Central Bank has ever reviewed the legality of these loans; and if he will make a statement on the matter. [23595/16]

Michael Noonan (Limerick City, Fine Gael)
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I do not have the exact date that the last life loan products were issued here but I understand from the Central Bank that these loans are regarded as a niche product and they have not been provided in the Irish market for a number of years. Neither my Department nor the Central Bank have carried out a specific review of the legality of these loans.

However, it should be noted that the Consumer Protection Code 2006 and the Consumer Protection Code 2012 contain a number of provisions regarding the provision of information to consumers in respect of these products.

The Consumer Protection Code 2006 contains requirements relating to:

- advising the consumer of the consequences of the lifetime mortgage including details of total costs involved,

- making consumers aware of the importance of seeking independent legal advice

- inclusion of a warning on any information document, application form etc. that "Purchasing this product may negatively impact on your ability to fund future needs"

The Consumer Protection Code 2012 contains more comprehensive provisions, including informing the customer of:

- the consequences of purchasing a lifetime loan,

- the circumstances in which the loan will have to be repaid,

- details of the interest rate that will be charged,

- an explanation of the impact of the rolling up of the interest over the duration of the loan,

- an indication of the amount required to repay the loan at maturity, the effect on the existing mortgage, if any; and

- an indication of the likely early redemption costs which would be incurred if the loan was redeemed on the third and fifth anniversary of the loan and at five yearly intervals thereafter.

The Consumer Protection Code 2012 also requires, at least annually, the provision of a statement of account including the opening balance, all transactions, all interest charged, all charges, the outstanding balance and details of the interest rate(s) applied to the account during the period covered by the statement.