Clare Daly (Dublin Fingal, Independent)
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17. To ask the Minister for Finance if he is satisfied that the avenues of complaint available to mortgage customers who may have been overcharged on their mortgages, including, for example, complaints to the Financial Services Ombudsman, are fit for that purpose. [44660/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The first avenue of complaint for any customer aggrieved by an action of a regulated financial service provider is to complain to the entity concerned. The Central Bank’s Consumer Protection Code provides that “A regulated entity must have written procedures in place for the effective handling of errors which affect consumers.” The Code also specifies the procedures to be followed in the event of a complaint.

When the complaint is finalised, the Code requires that the consumer be informed that they can refer the matter to the Financial Service Ombudsman.

If the consumer is not satisfied with the outcome of the complaint, I would strongly advise them to pursue a complaint with the Financial Services Ombudsman. The Ombudsman’s website has a simple on-line complaint form. Of course, it will also accept complaints in writing.

The Financial Services Ombudsman has informed me that he tries, in the first instance, to resolve complaints in an informal manner by mediation through its dedicated Dispute Resolution Service. Where disputes are not resolved through mediation the FSO will investigate and adjudicate the complaint.  The FSO has a wide range of powers and can direct compensation of up to €250,000 and direct rectification which could, for example, include redress where a borrower has been charged the incorrect interest rate.

As the Deputy may be aware, the time limit for long term financial services was recently extended and consumers are now able to submit complaints within three years of becoming aware of the reason for their grievance. The legislation also allows a consumer whose complaint was previously refused as outside time limits to submit a complaint.

It is my role as Minister for Finance to ensure that an appropriate framework is in place to allow consumers a simple and effective route to resolve complaints and I consider that such a framework is in place. The Financial Service Ombudsman provides a reasonably quick means of resolving complaints at no cost to the consumer. I am, aware of the discussions at the Finance and Public Expenditure and Reform and Taoiseach Committee and will be examining whether any further changes to the framework are required.

The Government believes the behaviour of the banks in regard to removing people from tracker mortgages was unacceptable. I have met or will meet the CEOs of the main banks, Bank of Ireland, AIB, Ulster Bank, PTSB and KBC, this week and will be making a statement when these meetings have concluded.