Question:
17 Mr. Hayes asked the Minister for Finance the legislative proposals, if any, he has to improve consumer protection for bank customers; and if he will make a statement on the matter. [9594/98]
Written Answers - Consumer Protection.
Michael Creed
Question:41 Mr. Creed asked the Minister for Finance if the working group to examine the adequacy of the supervisory powers of the Central Bank has reported to him; and if he will make a statement on the matter. [9606/98]
Pat Rabbitte
Question:68 Mr. Rabbitte asked the Minister for Finance the progress of the inter-departmental committee examining legislation governing the banking and financial sector; when it is expected to report; and if he will make a statement on the matter. [9876/98]
I propose to take Questions Nos. 17, 41 and 68 together.
Primary responsibility for legislation in relation to consumer protection rests with the Tánaiste and Minister for Enterprise, Trade and Employment. Specifically, the Consumer Credit Act, 1995, confers certain powers and duties on the Director of Consumer Affairs in the area of credit agreements with, amongst others, banks. That Act also provides a role for the director as a regulator of charges imposed on customers by credit institutions.
However, the Central Bank also has a role to play in relation to the protection of depositors' moneys from the perspective of its functions as prudential regulator of credit institutions.
Recent allegations have resulted in significant public concern about certain activities of particular banks and the banking industry generally. It is with this concern in mind that I decided to establish a working group of representatives from my Department, the Department of the Taoiseach, the Department of Enterprise, Trade and Employment, the Central Bank, the Office of the Director of Consumer Affairs and the Office of the Attorney General, the task of which is to investigate the law and practice governing the provision of financial sevices in Ireland and the impact this has on consumers. In this regard, the group is undertaking an assessment of the laws relating to both the role of the Director of Consumer Affairs and the role of the Central Bank, including the procedures used to give effect to these roles, with a view to identifying the impact of these on consumers and, in particular, to identify if there are gaps in consumer protection that need to be filled. The group has also been asked to consider what steps may be required to increase the public understanding of the regulatory systems, including the manner of their implementation.
The group has been asked to report its findings, and any recommendations it may have, to me by mid-May. I understand the group has met on three separate occasions to date. I have been advised significant progress has been made and that I should have its report within the timescale prescribed.