Vol. 476 No. 6
126 Mr. Callely asked the Minister for Enterprise and Employment his views and considerations in relation to the banks' and financial institutions' handling charges, consultation fees and other such charges; and if he will make a statement on the matter. [7834/97]
Under section 149 of the Consumer Credit Act, 1995, which came into effect on 13 May 1996, responsibility for the regulation of bank charges has been transferred to the Director of Consumer Affairs. This section provides that credit institutions had a period of three months within which to notify the director about their existing charges. All existing institutions have already done so.
Section 149 goes on to provide that credit institutions may not increase existing charges or introduce new charges without first notifying the director of their intentions. In support of proposals for increased or new charges the applicants must provide a statement of the commercial justification for the proposal including a detailed statement of cost and details of the estimated amount of additional income accruing from the proposal. Thus would-be applicants now have to undergo a rigorous process before charges can be increased or new charges introduced. Thus I am satisfied that the system as outlined provides adequate protection for consumers in this area.
