I believe that the Deputy is referring to card protection insurance. In that context, I have been advised by the Central Bank that at their request a voluntary redress scheme has been put in place in relation to card protection insurance provided by Homecare Insurance Ltd (HIL) and purchased through a number of credit card providers.
Customers who purchased or renewed a card protection policy, on or after 1 August 2006, provided by Homecare Insurance Ltd (HIL) and purchased through credit card providers, Bank of Ireland, MBNA Limited or Ulster Bank Ireland Limited may claim redress. The Central Bank intervened in this issue as information provided to customers, at point of sale, advertised some card protection benefits which were not needed i.e. liability for unauthorised use if a card was lost/stolen was covered by the card scheme and therefore, customers did not need additional insurance for this.
The scheme commenced on 30 March 2015. The credit card providers have been contacting impacted customers who should have received an explanatory letter and a claim form at this stage. Policyholders are required to sign and return the claim form to be considered for a refund of premiums paid since 1 August 2006 less any amounts paid to customer in respect of a previous claim. The policyholder is not required to demonstrate or articulate why they feel the policy was mis-sold to them but rather to sign and return the claim form. Regardless of when customers purchased this product, they are entitled to claim redress for premiums paid on or after 1 August 2006, the date from which the Consumer Protection Code came into effect. The maximum amount of compensation available equates to all premiums paid since 1 August 2006. For those customers choosing to make a claim, their policy will be cancelled.
As the Deputy may be aware, my Department is currently progressing the amalgamation of the Offices of the Financial Services Ombudsman and the Pensions Ombudsman. The question of the timeframe under which complaints can be reviewed is a policy matter which will be considered as the legislation to effect the amalgamation is being developed. The issues in this regard are complex involving a range of considerations including the interface with the Statute of Limitations, existing consumer protection laws, complaints mechanisms and the availability of records.
