Tuesday, 9 July 2019

Questions (146)

Pearse Doherty


146. Deputy Pearse Doherty asked the Minister for Finance if the Central Bank has engaged with banks over their interpretation of EU regulations regarding the imposition of break fees; if so, the nature and result of such engagements; and if he will make a statement on the matter. [29070/19]

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Written answers (Question to Finance)

The Central Bank of Ireland has advised me that it has checked the methodologies applied by lenders to calculate fixed rate breakage fees on mortgages subject to the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 and has seen no evidence of material failings in this regard.

In addition the Central Bank has stated that it cannot comment specifically on the compliance by individual financial service providers with their obligations under financial services legislation due to the Central Bank’s confidentiality obligations and the requirement to apply fair procedures. However, the Central Bank has advised that it has intervened with a small number of lenders to ensure that the information provided to consumers on fixed rate breakage fees is clear and transparent.