Dáil Éireann Debate, Tuesday - 12 June 2012
243 Deputy Tom Fleming asked the Minister for Finance if he will extend the consumer protection code for clients of banks to include members of credit unions; and if he will make a statement on the matter. [28340/12]
Amharc ar fhreagraThe Consumer Protection Code was introduced by the Central Bank under its own powers to issue codes, including under the Central Bank Act 1989. Section 184 of the Credit Union Act 1997 disapplies the Central Bank Acts as far as credit unions are concerned, which means that the Central Bank code-making powers cannot be used for credit unions. However, the Consumer Protection Code does not apply to credit union activities, other than when a credit union is acting as an insurance intermediary.
The recent report from the Commission on Credit Unions made recommendations for stabilising and restructuring the credit union sector and for strengthening its legislative and regulatory frameworks. However, the Commission made it very clear that this must take into account the credit unions' not-for-profit mandate, their volunteer ethos and community focus, while paying due regard to the need to fully protect members' savings and financial stability overall. The Commission on Credit Unions has specifically recommended that the powers available to the Central Bank under the Central Bank (Supervision and Enforcement) Bill 2011 should apply to credit unions. Section 40 of that Bill includes extensive regulation-making powers aimed at the protection of consumers, including many areas currently dealt with under the Consumer Protection Code.
