Dáil Éireann Debate, Tuesday - 23 July 2019
202. Deputy Michael McGrath asked the Minister for Finance if he is satisfied that all lenders are correctly applying the new rules governing the calculation of breakage fees for mortgage customers that wish to come off a fixed rate product early; and if he will make a statement on the matter. [33071/19]
View answerThe Central Bank of Ireland is the independent regulator of all regulated financial service providers and it has advised 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 that it has seen no evidence of material failings in this regard.
The Central Bank has also said 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 indicated 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.
More generally it could also be noted that if an individual consumer is not satisfied with the way a financial service provider is providing a financial service, s/he may make a complaint to the independent Financial Services and Pensions Ombudsman.
