Dáil Éireann Debate, Thursday - 28 January 2016
97. Deputy Michael McGrath asked the Minister for Finance the number of customer mobility measures that have been implemented in respect of Irish banks as a result of European Union action; his views on the effectiveness of such measures; and if he will make a statement on the matter. [3710/16]
View answerI presume that the question refers to measures to encourage or assist customers of Irish banks in moving to other banks. The Deputy will be aware that the Central Bank's Code of Conduct on Current Account Switching came into effect on 1 October 2010. This Code is designed to make the process of switching current accounts easier and quicker and to offer protection and support for consumers when switching bank account. The Switching Code places obligations and time limits on both the old and new bank when completing the switching process. This issue is also addressed in the Payment Accounts Directive which was adopted in 2014. My Department is currently working on its transposition.
The restructuring plans for Bank of Ireland, AIB and PTSB contained certain provisions in relation to customer mobility and public versions of these are available on the EU website. http://ec.europa.eu/competition/state_aid/register/. The individual banks' adherence to their commitments are independently assessed by monitoring trustees and reported at least every six months to the Commission. One element of the State Aid approval process is that the Commission has required AIB and PTSB to fund a public awareness campaign to raise awareness and promote customer switching. My Department is currently in the process of preparing a tender competition to meet this commitment.
The Deputy may also be aware that the EU Commission published a green paper on retail financial services in December which is available at http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2015:630:FIN. The paper seeks views on how to improve choice, transparency and competition in retail financial services to the benefit of European consumers. The Commission is seeking views from interested parties by 18 March 2016.
As I have previously said, I would strongly encourage prospective borrowers and other consumers of financial services to shop around for the best deal available. In this regard the Competition and Consumer Protection (CCPC) website, www.consumerhelp.ie has very useful information on comparative offerings of financial services.
