27 Feb 2013, 16:42
The Committee on Finance, Public Expenditure has today, Wednesday, 27th February, called for a review of protocols in banks’ credit review processes to address the deficit of information on the Credit Review Office provided to customers who have been refused credit.
Committee Chairman Ciarán Lynch TD said: “At our meeting with John Trethowan of the Credit Review Office on 20th February 2013 members became aware that where banks complete an internal review of a refusal to grant credit and the decision to refuse is upheld, there is no statutory requirement, including provisions within a code of conduct or protocol, that any information regarding the Credit Review Office and its appeals process is made available by the bank in correspondence with the customer.”
Committee Chairman Ciarán Lynch TD has written to Minister for Finance Michael Noonan, Secretary General of the Department of Finance John Moran, Central Bank Governor Patrick Honahan, Group Chief Executive of Bank of Ireland Richie Boucher, Governor of the Bank of Ireland Archie Kane, AIB Chairman David Hodgkinson and AIB Chief Executive David Duffy to request a change in procedures to deal with the lack of information regarding the Credit Review Office’s operations.
Deputy Lynch said: “Our Committee is requesting that, as standard practice, details of the Credit Review Office and its appeal process should be included by the bank in any correspondence advising the customer in situations where an internal bank review or appeal has upheld a decision to refuse credit.”
“While we appreciate that it may not be possible, in the short term, to make this a statutory requirement; however, the Committee is recommending, as a temporary measure pending legislation, that this shortcoming should be addressed by way of a protocol or code of practice.”
For further information please contact:
Ciaran Brennan,
Houses of the Oireachtas,
Communications Unit,
Leinster House,
Dublin 2
P: +3531 618 3903
M: 086-0496518
F: +3531 618 4551
Committee Membership
Deputies
Richard Boyd-Barrett, People Before Profit
Michael Creed, Fine Gael
Pearse Doherty, Sinn Fein
Stephen Donnelly, Independent
Sean Fleming, Fianna Fáil
Joe Higgins, Socialist Party
Heather Humphreys, Fine Gael
Kevin Humphreys, Labour Party
Peter Mathews, Fine Gael
Mary Lou McDonald, Sinn Fein
Ciarán Lynch, Labour Party (Chairman)
Michael McGrath, Fianna Fáil
Dara Murphy, Fine Gael
Timmy Dooley, Fianna Fáil
Kieran O’Donnell, Fine Gael
Arthur Spring, Labour Party
Brian Stanley, Sinn Féin
Billy Timmins, Fine Gael
Liam Twomey, Fine Gael
Simon Harris, Fine Gael
Aodhán Ó'Ríordáin, Labour Party
Senators
Sean D Barrett
Thomas Byrne
Paul Coghlan
Michael D’Arcy
Aideen Hayden
Tom Sheahan