Thursday, 5 July 2012

Questions (69)

Bernard J. Durkan

Question:

65 Deputy Bernard J. Durkan asked the Minister for Finance the procedure followed to record the level of default or refusal by insurers to honour mortgage protection contracts in both the domestic and commercial sectors; and if he will make a statement on the matter. [32921/12]

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Written answers (Question to Minister for Finance)

I have been advised by the Central Bank that, following their latest inspection into the sale of Payment Protection Insurance, the Bank has identified a number of concerns arising from the inspection. The inspection was carried out in order to determine compliance with the provisions of the 2006 Consumer Protection Code, now revised since 1 January 2012. As a result of the inspection, the Central Bank is requiring the seven firms inspected to conduct a comprehensive review of all of their PPI sales from August 2007 to date. The firms are requested to respond to the Central Bank by 17 August 2012. Copy of the Press Release dated 2 July 2012 and a copy of the letter issued to the firms concerned are available on the Central Bank's website: www.centralbank.ie. As I have indicated in a reply to a Parliamentary Questions on this subject on 28 June 2012, the Financial Services Ombudsman has advised me that, since 1 January 2007, his Office has received the following number of complaints from consumers in relation to mortgage protection insurance policies:

Year

Total number of complaints received

2007

91

2008

80

2009

129

2010

182

2011

200

2012 (to date)

88

As the Deputy is aware, the Ombudsman is independent in the carrying out of investigations of complaints from consumers and in his determinations thereon. It would not be appropriate for me to comment on any findings which he has or will issue in regard to this matter.