Michael McGrath (Cork South Central, Fianna Fail)
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190. To ask the Minister for Finance if the Central Bank is currently investigating the incorrect disclosure in advertisements of annual percentage rates by certain financial institutions; the precise nature of the investigation; the institutions concerned, the period covered and the credit products involved; if the advertised Annual Percentage Rate, APR, understated or overstated the actual APR in each case; if the Central Bank is satisfied that consumers were actually charged the correct rates; and if he will make a statement on the matter. [13215/17]

Michael Noonan (Limerick City, Fine Gael)
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I understand from the Central Bank that it is engaging with a small number of lenders regarding the incorrect disclosure of Annual Percentage Rates (APRs) to customers on certain credit products. Certain lenders identified issues with the APRs they had disclosed to customers on pre-sale material in relation to credit cards and notified the Central Bank, as required under the Consumer Protection Code.  The Central Bank then requested a review of APR calculations on other credit products by these lenders and requested other lenders to confirm that calculations were in line with the method prescribed by the Consumer Credit Directive.

The Central Bank has made it clear that while the APRs disclosed were incorrect in these cases, the borrowing rates charged were in line with the borrowing rates disclosed. From the Central Bank's perspective therefore the consumer protection issue relates to incorrect disclosure of key information, rather than overcharging. I have been informed that all relevant lenders have implemented steps to correct the calculation of APR disclosed in pre-sale documentation to consumers. The Central Bank have informed me that they are not in a position to disclose specifics on the firms concerned and have also informed me that they are not in a position to disclose specifics on the time period covered at this stage.