Catherine Murphy (Kildare North, Social Democrats)
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85. To ask the Minister for Finance the protections that are in place for consumers particularly younger people availing of buy-now, pay-later lending services; and if these providers are actively monitored by the Central Bank. [23679/22]

Catherine Murphy (Kildare North, Social Democrats)
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86. To ask the Minister for Finance the number of buy-now, pay-later lending providers (details supplied) that are operating in the Irish market at present; the market share of these providers; and the number of Irish companies using their services at present. [23680/22]

Catherine Murphy (Kildare North, Social Democrats)
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87. To ask the Minister for Finance the number of buy-now, pay-later loans administered in Ireland; the amount of money spent through these loans; the percentage of buy-now, pay-later loans in relation to the total number of loans administered; and the age breakdown of buy-now, pay-later loans from 2019 to date. [23681/22]

Catherine Murphy (Kildare North, Social Democrats)
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88. To ask the Minister for Finance if buy-now, pay-later lending providers that are operating in Ireland are required to report successful and unsuccessful payment histories to the Central Credit Register; if buy-now, pay-later loan providers operating in Ireland are required to run a credit check prior to administering a loan; and if not, if his Department has considered this measure. [23682/22]

Catherine Murphy (Kildare North, Social Democrats)
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89. To ask the Minister for Finance if the Central Bank or his Department are monitoring the targeting of young people by buy-now, pay-later loan providers; the rate of usage of these services among young people; the rate of missed payments by young people; and if he will make a statement on the matter. [23683/22]

Catherine Murphy (Kildare North, Social Democrats)
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90. To ask the Minister for Finance if his attention has been drawn to United States research by a company (details supplied); and if his Department is considering any educational initiatives for young people in relation to credit, the implications of missing payments or the implications of having multiple loans at one time. [23684/22]

Catherine Murphy (Kildare North, Social Democrats)
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91. To ask the Minister for Finance if his attention has been drawn to the multiple class action lawsuits taken against a company (details supplied) in the United States alleging that the company did not adequately represent the hidden costs behind the service; and if the service provided by the company and similar providers in Ireland have been reviewed to ensure that the hidden costs are clear to the consumer. [23685/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 85 to 91, inclusive, together.

The Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Act 2022 will bring all the direct and indirect providers of credit (including credit which is termed ‘buy now pay later’), as well as the providers of hire purchase and consumer hire agreements, to consumers within the regulatory remit of the Central Bank of Ireland. This will also allow the Central Bank to collect data on the size of that market.

This will also allow the Central Bank to apply the Consumer Protection Code 2012 (and any other relevant code, or any relevant regulation or direction the Central Bank may make under the Central Bank Acts) to such credit providers. In this regard the Deputy may wish to note that the Central Bank has, on 29 March last, published a Notice of Intention to amend the Consumer Protection Code so that relevant provisions of the Code, including those contained in Chapter 5 in relation to ‘Knowing the Consumer and Suitability’, will apply to the credit providing entities which will now come within the scope of Central Bank regulation and to existing regulated entities which provide ‘buy now pay later’ type credit. The Notice of Intention is available to view on the consumer protection section of the Central Bank’s website.

In relation to reporting to the central credit register (CCR), the provisions relating to the operation of the CCR are governed by the Credit Reporting Act 2013 and, under those provisions, lenders are obliged to submit information to the CCR on a credit agreement or loan for €500 or more and are obliged to enquire on the CCR when considering loan applications of €2,000 or more. These requirements apply to any type of credit, irrespective of the terminology of the particular credit, which falls within the scope of the Credit Reporting Act.

The increased regulation of the credit market will enhance the level of consumer protection associated with the provision of credit and will over time facilitate the increased monitoring of the operation and level of the market for indirect credit.

The Deputy may also wish to note that the Competition and Consumer Protection Commission ('CCPC'), which is under the remit of the Minister for Enterprise, Trade and Employment, published consumer advice on 'Buy Now Pay Later' credit agreements in December 2021. This explained what BNPL is, what consumers need to know about this service and what to do if a person was unable to make payments.

In relation to legal action in the United States, I have no particular knowledge other than information which is in the public domain of the case referred to by the Deputy.

Róisín Shortall (Dublin North West, Social Democrats)
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92. To ask the Minister for Finance if he plans to introduce regulations outlining the forms of identification which financial institutions may request when a customer applies to open a new bank account; if his attention has been drawn to concerns that banks are relying on passports as a form of identification which is costly in cases in which a person has an out-of-date passport; and if he will make a statement on the matter. [23707/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Credit and Financial Institutions are obliged to identify and verify their customer’s identity on the basis of documents or information that they have reasonable grounds to believe can be relied upon to confirm the identify of their customer. Institutions often use official documents, like passports or driving licences, in order to verify a customer’s identity. However, neither the relevant legislation (the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended), nor the Central Bank of Ireland are prescriptive as to what documents and information can be relied upon. This reflects the risk-based approach to anti-money laundering and countering the financing of terrorism (AML/CFT) compliance and supervision. Accordingly, institutions have some flexibility in regards to the forms of identity documentation they may wish to rely upon.

Therefore, the AML/CFT legal framework is sufficiently flexible to allow institutions to accommodate both financial inclusion and effective risk management through reliance on various forms of identification which include, but are not limited to, passports.

In accordance with this approach to AML/CFT matters, I have no plans at this time to introduce regulations outlining the forms of identification which financial institutions may request when a customer applies to open a new bank account.