Written answers

Tuesday, 22 March 2022

Photo of Thomas GouldThomas Gould (Cork North Central, Sinn Fein)
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249. To ask the Minister for Finance if he will consider requesting that banks reduce or end returned direct debit charges given the rising cost of living and the struggle experienced by some in paying bills. [14393/22]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As Minister for Finance, I do not have a direct function in the operations of any bank. Although the State is a shareholder in some of the banks operating in the State, they must be run on a commercial and independent basis.

While the charging of fees is a commercial decision for regulated entities, within the parameters of the regulatory framework, under Section 149 of the Consumer Credit Act, 1995 (as amended) (‘the Act’), credit institutions must notify the Central Bank if they wish to:

- Introduce any new customer charge for providing certain services; or

- Increase any existing customer charge for providing certain services.

Each notification received by the Central Bank is assessed and robustly challenged in accordance with the specific criteria set out in Section 149 of the Act. Having considered the proposed charge(s) under the assessment criteria as set out under the legislation, the charges are either rejected, approved at lower levels than requested by the credit institution, or approved in full.  Credit institutions are free to impose any pricing differentials for the service up to the permitted maximum and are free to waive charges at their discretion for commercial or competitive reasons.

Separately, the European Union (Payments Accounts) Regulations 2016 requires that a consumer must be provided with a Fee Information Document setting out all fees linked to an account, in good time before entering into a framework contract. A consumer must also be provided, at least annually, with a Statement of Fees, setting out all fees incurred in respect of the account. These requirements ensure the consumer is fully informed of all fees linked to a payment account.

If customers are unhappy with their current account provider for any reason, including cost, they have the right to switch to a different provider. The Competition and Consumer Protection Commission operates a comparison tool for current account fees on its website, this can be used by consumers to find the account which best meets their needs.

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