Pearse Doherty (Donegal, Sinn Fein)
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271. To ask the Minister for Finance his views on the appropriateness of the regulation of the buy-now, pay-later products; and if he will make a statement on the matter. [35785/25]

Pearse Doherty (Donegal, Sinn Fein)
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272. To ask the Minister for Finance for an update on the implementation of recommendation 11.2 of the retail banking review; if he will ensure that the recommendation is prioritised given the rise in buy-now, pay-later products; and if he will make a statement on the matter. [35786/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 271 and 272 together.

The Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Act 2022 provides that any person whose business, directly or indirectly, provides credit, including credit which is termed as 'buy now pay later' (BNPL) type credit, or hire purchase or consumer hire agreements to consumers now falls within the regulatory remit of the Central Bank of Ireland.

Following on from this legislative change, the Central Bank then amended its regulatory framework and consumers who enter into BNPL credit agreements are now protected by the Bank’s consumer protection framework including key provisions of the Consumer Protection Code 2012 (Chapter 2 General Principles, Chapter 5 Knowing the Consumer and Suitability and Chapter 9 Advertising), the Minimum Competency Code 2017, and the Minimum Competency Regulations 2017.

Furthermore, the revised Code, which takes effect on 24 March 2026, builds on the protections of the existing Code and it will apply in full to the provision of BNPL agreements ensuring that customers of these credit providers are afforded the same protections as customers of other credit providers.

In addition, the new EU consumer credit directive, which is due to be transposed later this year and to come into effect in 2026 will also apply to BNPL agreements.

In relation to the central credit register (CCR), that register was established by the Central Bank under the Credit Reporting Act 2013 (the Act). The Act provides a threshold of reporting to the CCR of €500. It also provides that Credit Information Providers must enquire on the CCR when considering a credit application for €2,000 or greater and may enquire when considering credit applications for a lower value.

The Retail Banking Review set out a wide range of recommendations to improve the sector and customers' experiences. Each recommendation identified the body or bodies responsible for delivery of that recommendation and, where appropriate, contain timelines for delivery of the recommendations.

Regarding the CCR fee structure, the CCR has been established on the general basis that all costs associated with its establishment and operation will be recouped over time. The Central Bank has committed to keeping the fee structure under review after a period of operation in light of actual usage or other relevant developments or enhancements to the CCR and in that regard it can be noted that the Central Bank reduced the fee to €3.00 per enquiry for lenders with effect from 1 January 2024.

My Department will continue to liaise with the Central Bank and all relevant stakeholders on the on-going management and operation of the CCR, including its fee structure and reporting thresholds.