Dáil Éireann Debate, Tuesday - 6 May 2014
146. Deputy Michael McGrath asked the Minister for Finance if a person who takes out a tracker mortgage and subsequently avails of a fixed rate offer from their bank is entitled to return to the tracker rate once the fixed rate period concludes; the obligations on a bank to advise customers availing of a fixed rate offer of the conditions that will apply when the period ends; and if he will make a statement on the matter. [20015/14]
View answerFirstly, I must confirm to the Deputy that it is not appropriate for me, as Minister for Finance, to comment on or become involved in the detailed mortgage position of individual mortgage holders.
On the issue more generally, under the Central Bank's Consumer Protection Code, a regulated financial institution must act honestly, fairly and professionally in the best interests of its customers and the integrity of the market. Furthermore, the Code requires a regulated financial institution to make full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer. Paragraph 6.9 of the Consumer Protection Code refers specifically to cases where a regulated financial institution offers a personal consumer the option to move from a tracker interest rate to an alternative rate on the existing loan. As well as the information provision, the paragraph also requires that a specific warning is issued in circumstances where a personal consumer will not be allowed to revert to a tracker interest rate if that consumer moves to an alternative rate.
