Written answers

Tuesday, 19 June 2018

Department of Finance

Financial Services and Pensions Ombudsman Remit

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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144. To ask the Minister for Finance the position in relation to people submitting complaints to their financial institution or to the Financial Services and Pensions Ombudsman in relation to alleged mis-selling of payment protection insurance policies; the position in relation to the statute of limitations; if people can now make a complaint if they fell outside the scope of the Central Bank investigation into this issue due to the fact they bought the product prior to July 2007; and if he will make a statement on the matter. [26377/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As I informed the Deputy on Tuesday 12th June in response to PQ 24855, the Financial Services and Pensions Ombudsman Act 2017 provides for the following time limits in relation to long-term financial services.

"(2) A complaint in relation to -

(a) conduct referred to in section 44(1)(a) that, subject to the requirements specified in subsection (3), relates to a long-term financial service, or shall be made to the Ombudsman within whichever of the following periods is the last to expire:

(i) 6 years from the date of the conduct giving rise to the complaint;

(ii) 3 years from the earlier of the date on which the person making the complaint became aware, or ought reasonably to have become aware, of the conduct giving rise to the complaint;

(iii) such longer period as the Ombudsman may allow where it appears to him or her that there are reasonable grounds for requiring a longer period and that it would be just and equitable, in all the circumstances, to so extend the period.

(3) The requirements referred to in subsection (2)(a) are that -

(a) the long-term financial service concerned has not expired or otherwise been terminated more than 6 years before the date of the complaint, and the conduct complained of occurred during or after 2002, or

(b) the Ombudsman has allowed a longer period under subsection (2)(iii)."

In relation to Payment Protection Insurance (PPI), I understand from the Financial Services and Pensions Ombudsman's Office that this may, in certain circumstances, be considered a long term financial product when there is a life cover or death benefit attaching. In addition if the loan to which the payment protection is attached is over five years and one month in duration, it would be considered a long term financial product. In these circumstances the Ombudsman may investigate a complaint where the conduct complaint of occurred during or after 2002 or at his discretion before this date.

This would apply even if the conduct being complained of was outside the scope to the Central Bank review. The Deputy will be aware that the Consumer Protection Code 2006 came fully into effect on 1 July 2007 and that the objective of the Review was to identify if there were instances where the Code was not complied with and where appropriate to remediate customers.

I should stress that it must appear to the Ombudsman that there are reasonable grounds for requiring the longer period and it would be just and equitable in all the circumstances to extend the period.

The statute of limitations is a matter for my colleague the Minister for Justice and Equality.

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