Bernard Durkan
Question:74. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which banking charges for various services remain a concern; and if he will make a statement on the matter. [8819/14]
View answerThursday, 20 February 2014
Questions (74)
Written answers
As the Deputy is aware bank fees, charges and commissions are subject to regulation under Section 149 of the Consumer Credit Act 1995, as amended. Section 149 came into effect in 1996 and currently requires that credit institutions, prescribed credit institutions and bureaux de change must make an application to the Central Bank if they wish to introduce a new customer charge or increase any existing customer charge in respect of certain services. Section 149 does not apply to interest rates; it applies to fees, charges and commissions only.
My Department recently published a review of the regulation of bank fees and charges which is available on the website www.finance.gov.ie. The review concluded that it would not be appropriate to repeal Section 149 at this time. The lack of competition in the banking sector means that the repeal of section 149 would give unfettered price setting power to the incumbent banks. The report recommends that this issue should be revisited when competition in the banking sector has improved significantly. It is my view that the current regulatory regime offers appropriate protection to consumers against unjustified increases in bank fees and commissions.