Michael McGrath (Cork South Central, Fianna Fail)
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120. To ask the Minister for Finance the requirements on lenders to provide information to consumers when they are offering incentives such as cashback offers in the context of the new requirements introduced by the Central Bank to provide additional transparency and facilitate mortgage switching; and if he will make a statement on the matter. [27839/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Central Bank advises that Provision 6.12 of the Consumer Protection Code 2012 states that, where a regulated entity offers an incentive to a personal consumer on an existing mortgage, the regulated entity must provide the personal consumer, on paper or on another durable medium, with the information needed to consider the incentive offered.

This information must:

1. Quantify the implications for the personal consumer of availing of the incentive including an indicative cost comparison of the total cost of the existing mortgage if they do not avail of the incentive and the total cost of the mortgage if they avail of the incentive;
2. Clearly set out the length of time during which the incentive will be available;
3. Clearly set out any assumptions used, which must be reasonable and justifiable;
4. Set out the advantages and disadvantages to the personal consumer of availing of the incentive;
5. Include other key information which the personal consumer should have available to them when considering the incentive; and
6. Include a statement that the personal consumer may wish to seek independent advice prior to availing of the incentive.

Michael McGrath (Cork South Central, Fianna Fail)
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121. To ask the Minister for Finance the details of the Central Bank's findings when it reviewed advertisements of incentives by lenders in the context of the new requirements introduced by the Central Bank to provide additional transparency and facilitate mortgage switching; the nature of the breaches it identified; the breakdown and details of the 75% of advertisements that it required to be withdrawn or amended; and if he will make a statement on the matter. [27840/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Central Bank advises that it recently undertook a review of mortgage related advertising, with a focus on cash back incentives, to assess clarity and transparency for consumers. 

A risk to consumer protection exists where consumers are not informed of all of the consequences of choosing a mortgage that offers short-term financial relief, including that it may cost the consumer more in mortgage repayments over the life of his/ her mortgage than if he/ she had chosen an alternative product. 

Some 183 advertisements were reviewed for compliance with the advertising requirements in the Consumer Protection Code 2012 and the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (S.I. No. 142/2016).  In some cases, the same advertisement may have appeared across all formats of advertising reviewed.

As a result of the review, the Central Bank instructed lenders to withdraw or amend c.75% of the advertisements included. 

In summary, the key findings from the review were:

- Key information and qualifying criteria was not always included in the main body of the advertisements, or indeed in the small print (e.g. whether a current account with the lender was required in order to qualify);

- The content of some webpages was not accurate and/or up to date; and

- The content of some of the advertisements was unclear (e.g. how the cash back incentive was calculated).