Pearse Doherty (Donegal, Sinn Fein)
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294. To ask the Minister for Finance further to Parliamentary Question No. 299 of 5 February 2025, if in light of the court case proceeding in Britain, if any redress would be appropriate for customers that made a purchase of motor insurance prior to 31 July 2024; and if he will make a statement on the matter. [23141/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I take it that the Deputy is referring to the issue of motor finance as previously addressed in the Parliamentary Question of 5 February 2025.

As the Deputy is aware, the Central Bank of Ireland instructed regulated firms who were applying discretionary commission arrangements to motor finance hire purchase arrangements to cease that practice from 31 July 2024. The Central Bank advises that all relevant motor finance providers in Ireland have now ended this practice.

The Central Bank also advises that, while the Bank has redress powers under the Central Bank (Supervision and Enforcement) Act 2013, the Bank’s ability to direct appropriate redress for customers is predicated on the Bank being satisfied that there have been widespread or regular relevant defaults by a regulated financial service provider and that, in consequence, loss or damage has been, is being or will be suffered by customers of that entity. The Central Bank indicates that, to date, it has not established a relevant default and loss/damage suffered by customers.

If a consumer has any concerns or questions in relation to their motor finance product taken out in the past, on this or any other matter, they can contact the regulated firm that sold them the product. The consumer protection framework provides that any consumer who is not satisfied with how a regulated firm is dealing with them in the course of providing a service can make a complaint directly to the regulated firm. If a consumer is not satisfied with how their complaint is dealt with by a regulated entity, they have the option of then making a complaint to the Financial Services and Pensions Ombudsman (FSPO).

The Central Bank has also indicated that it will continue to monitor complaints trends, including through its engagement with the FSPO.