Dáil Éireann Debate, Monday - 11 September 2017
189. Deputy Michael McGrath asked the Minister for Finance if it is Central Bank policy that the banks should record all telephone conversations between members of staff and the banks' customers; the current policy of banks (details supplied) in this regard; the length of time such recordings should be retained for; and if he will make a statement on the matter. [38248/17]
View answerThe Code of Conduct on Mortgage Arrears Provides that "A lender must maintain recordings of all Arrears Support Unit telephone calls made to or from a borrower in relation to his/her arrears or pre-arrears." and that "All records required by, and demonstrating compliance with this Code, must be retained by the lender for six years. In addition, all records relating to a borrower must be retained for six years from the date the relationship with the borrower ends."
I understand that it is KBC Bank Ireland’s policy to record business transactions carried out on the telephone which create a verbal contract. Customers are advised that calls may be recorded for quality and training purposes. It is the Bank’s policy to provide customers with a copy of such voice recordings where requested.
I understand that calls between staff and customers at AIB are recorded in certain business areas depending on business need or business requirement (e.g. Call centres, dealing rooms) or where there is a regulatory requirement (for example under the Code of Conduct on Mortgage Arrears). In general and particularly where there is a regulatory requirement, calls are retained for six years and in some circumstances, for six years from the date the relationship with a borrower ends or if the provision of any product or service to the consumer concerned is ceased.
I have been informed by Bank of Ireland that it adheres to the Consumer Protection Code and the Code of Conduct on Mortgage Arrears which set out certain requirements for lenders – including Bank of Ireland – in relation to the recording of customer telephone calls.
Ulster Bank has informed me that where the bank records telephone conversations between its customers and the bank, these recordings are held for the period required under the relevant legislation (e.g. Data Protection, Codes of Conduct and Code of Conduct on Mortgage Arrears). The bank also informed me that not all calls are recorded, for example if a consumer calls an advisor on their mobile, the call is not recorded.
Permanent TSB have informed me that the bank has policies in place to ensure that their regulatory obligations (e.g. Consumer Protection Code/Code of Conduct on Mortgage Arrears) requiring the recording of telephone conversations with certain customers are met. The Bank may record conversations with customers for training and quality purposes. Telephone recordings are primarily focused on areas of the bank where service through face to face customer contact is not available. These areas include Permanent TSB’s Telephone Banking Service and its Arrears Support Unit.
I should also add that the Financial Services Ombudsman has informed me that recordings of telephone conversations relevant to a dispute between a customer and their financial service provider can provide very useful, objective contemporaneous evidence for him when investigating and adjudicating complaints.
On the issue more generally, the Central Bank has informed me that the Bank’s Consumer Protection Code 2012 does not require regulated entities, including banks, to record all telephone calls with customers. However, Provision 3.44 of the Code provides that when making telephone contact in accordance with the Code, the representative of a regulated entity must inform the consumer that the telephone contact is being recorded, if this is the case. Chapter 11 of the Code sets out the record keeping requirements regulated entities must comply with in respect of regulated activities within the scope of the Code.
Provision 11.5 states that a regulated entity must maintain up-to-date records containing “all correspondence with the consumer and details of any other information provided to the consumer in relation to the product or service”. The Code defines “record” as “any document, file or information (whether stored electronically or otherwise) and which is capable of being reproduced in a legible form.” Therefore, while a regulated entity is not required by the Code to record telephone calls to comply with Provision 11.5, if the firm does choose to record calls, the Central Bank’s view is that the call recordings would constitute ‘records’ under the definition outlined above and must be retained. If the regulated entity does not record calls, the Central Bank expects that they would document that a telephone call was made and a summary of the conversation, and that this would be retained. Provision 11.6 of the Code requires regulated entities to retain details of individual transactions for six years after the date on which the particular transaction is discontinued or completed, but must retain all other records for six years from the date on which the regulated entity ceased to provide any product or service to the consumer concerned. The Central Bank’s Code of Conduct on Mortgage Arrears 2013 (the CCMA) applies to the mortgage loan of a borrower which is secured by his/her primary residence, and sets out how mortgage lenders must treat borrowers in arrears or pre-arrears. Provisions 61 to 65 of the CCMA set out the records and compliance requirements. The CCMA requires a lender to maintain recordings of all Arrears Support Unit telephone calls made to or from a borrower in relation to his/her arrears or pre-arrears. All records required by the CCMA, including call recordings, must be retained by the lender for six years. In addition, all records relating to a borrower must be retained for six years from the date the relationship with the borrower ends.
