Dáil Éireann Debate, Thursday - 12 March 2015
111. Deputy Michael McGrath asked the Minister for Finance the number of complaints that have been made against banks for non-compliance with the Code of Conduct on Mortgage Arrears since it was instituted; the number that have been upheld; the sanctions that have been imposed on banks for cases of non-compliance; the maximum sanction that may be handed down; and if he will make a statement on the matter. [10985/15]
View answerI am informed by the Central Bank that it does not publish statistics in relation to the number complaints against banks for non-compliance with the CCMA.
The Central Bank monitors compliance with the statutory consumer protection requirements through its on-going engagement with firms; reviews and research; themed inspections; mystery shopping; and advertising monitoring. The Central Bank regularly conducts themed inspections to ensure compliance with all of its codes of conducts, including the CCMA.
Themed inspections examine issues across a sector. Where a specific compliance issue arises with an individual firm, this is addressed directly with the firm and where appropriate, supervisory action is taken.
To date the Central Bank has not imposed a sanction on a mortgage lender in relation to breaches of the CCMA. However, it is important to note that supervisory intervention is not limited to the use of administrative sanctions.
The Central Bank has conducted a number of themed inspections on the CCMA since its introduction in 2009. Details of these themes and the feedback issued can be found at the following link: http://www.centralbank.ie/regulation/processes/consumer-protection-code/compliance-monitoring/Pages/themed-inspection.aspx
In 2014 the Central Bank commenced a themed inspection of compliance with the CCMA and this is currently on going. The Central Bank plans to publish the results in the first half of this year.
The themed inspection includes onsite inspections of a number of regulated mortgage lenders to examine the processes in place around certain provisions of the CCMA and the controls lenders have in place to ensure compliance with those processes and the CCMA. The Central Bank expects to see that mortgage lenders have taken the letter and spirit of the CCMA seriously and it will seek to ensure that they can demonstrate compliance with its provisions. Where the Central Bank finds evidence of instances of non-compliance, it will continue to hold regulated lenders to account for any deficiencies in their policies and practices in this regard.
