Catherine Connolly (Galway West, Independent)
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64. To ask the Minister for Finance if his attention has been drawn to financial institutions refusing to provide bank accounts not including credit facilities to persons previously adjudicated bankrupt and who have since been discharged from bankruptcy; his views on the practice; the options in respect of financial services available to such persons; and if he will make a statement on the matter. [35454/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised that there are a number of regulatory requirements, which regulated entities must adhere to in the provision of payment accounts.

Under the Payment Accounts Directive, all Irish banks must make available a basic bank account for people who currently do not have access to a bank account. This Directive was transposed in Ireland by way of the European Union (Payment Accounts) Regulations 2016. As a result, since 18 September 2016, any consumer who is legally resident in the European Union and who does not already have a payment account with a credit institution in the State has the right to open and use a payment account with basic features.

A payment account with basic features is like a regular payment account in several respects, but does not offer credit facilities i.e. overdrafts. All of the credit institutions provide payment accounts with basic features.

The idea of the Basic Bank Account was to allow individuals who had previously been declared bankrupt, more vulnerable members of society, or asylum seekers to gain access to a bank account and a payment instrument in order to purchase goods and services both online and in store. The opening and use of such accounts shall be in accordance with the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.

A relevant credit institution may refuse an application for a basic payment account where the applicant already holds a payment account with a credit institution in the State. A credit institution must refuse an application where such refusal is necessary to avoid an infringement of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.

Where a relevant credit institution decides to refuse an application, it shall:

(a) notify the applicant in writing and free of charge of the refusal and the grounds for the refusal, unless such notification would be contrary to section 49 of the Act of 2010 or objectives of national security or public policy,

(b) where the refusal is on the grounds referred to in paragraph (4) (i.e. is necessary to avoid an infringement of the 2010 Act), take appropriate measures as required under Chapter 4 of Part 4 of the Act of 2010,

(c) advise the consumer of—

(i) the procedure for submitting a complaint to it against the refusal, and

(ii) the consumer’s right to contact the Bank and the Financial Services Ombudsman in relation to the refusal, including the relevant contact details.

Firms should also be mindful of provision 2.11 of the Consumer Protection Code 2012 (the Code). This provides that a regulated entity must ensure that in all its dealings with customers and within the context of its authorisation it, without prejudice to the pursuit of its legitimate commercial aims, does not, through its policies, procedures, or working practices, prevent access to basic financial services.

If a consumer is not satisfied with how a regulated firm is dealing with them, or they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated firm. If they are still not satisfied with the response they receive from the regulated firm, they can refer their complaint to the Financial Services and Pensions Ombudsman (FSPO).