Pearse Doherty (Donegal, Sinn Fein)
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155. To ask the Minister for Finance the number of applications that have been granted by the Central Bank under section 149 of the Consumer Credit Act 1995 for the provision of a new service or an increase in existing customer charges by each bank operating here since 1 October 2013; and the detail of each application granted. [29720/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Under Section 149 of the Consumer Credit Act 1995 (as amended) (the Act) credit institutions are required to notify the Central Bank of Ireland (the Central Bank) if they wish to:

- introduce any new customer ‘charge’ for providing a ‘service’; or

- increase any existing customer ‘charge’ for providing a ‘service’.

A credit institution cannot impose a new charge or increase an existing charge unless the charge proposed has been notified to and approved by the Central Bank.

The terms ‘Charge’ and ‘Service’ are defined in the Act, as follows:

'Charge’ includes a penalty or surcharge interest by whichever name called, being an interest charge imposed in respect of arrears on a credit agreement or loan, but does not include any rate of interest or any charge, cost or expense levied by a party other than a credit institution in connection with the provision of a service to the credit institution or the customer and that is to be discharged by the customer.

A charge would therefore include a penalty or surcharge interest but does not include standard interest rates.

‘Service’ means any service provided by a credit institution to a customer in respect of the following:

- Making and receiving payments.

- Providing foreign exchange facilities.

- Providing and granting credit.

- Maintaining and administrating transaction accounts.

Relevant charges are assessed by the Central Bank in accordance with the criteria laid down in the legislation, as follows:

- The promotion of fair competition.

- The commercial justification submitted in respect of the proposal.

- The impact new charges or increases in existing charges will have on customers.

- Passing on costs to customers.

A notification made under Section 149 of the Act may include multiple charges and, having considered the proposed charge(s) under the assessment criteria as set out under the legislation, the proposed charges may be rejected, approved at lower levels than requested by the credit institution or approved in full.

Approvals, partial approvals and rejections are issued in the form of a letter of direction and the credit institution is legally bound to comply with this letter of direction. The letter of direction sets out the maximum amount the credit institution is allowed to charge for the relevant service. 

It should be noted that credit institutions are free to impose any pricing differentials for the service up to the permitted maximum and are free to waive fees at their discretion.

* data from 1 October 2013 up to and including 31 December 2013

**data from 1 January 2017 up to and including 22 June 2017

***data in respect of partial approvals may include some rejected charges

The Central Bank is not in a position to provide “the detail of each application granted” in respect of the notifications referred to in the table above due to confidentiality obligations pursuant to Section 33AK of the Central Bank Act 1942.