Currency Exchange

Dáil Éireann Debate, Tuesday - 15 July 2014

Tuesday, 15 July 2014

Ceisteanna (186)

Stephen Donnelly

Ceist:

186. Deputy Stephen S. Donnelly asked the Minister for Finance further to Parliamentary Question No. 64 of 2 July 2014, where he stated the Central Bank of Ireland has a wider role in relation to the approval of certain charges by credit institutions and bureaux de change under section 149 of the Consumer Credit Act 1995 as amended including the margins charged for foreign exchange services on top of the benchmark foreign exchange rates; if he will outline the oversight that these charges and margins takes place at the Central Bank; if the Central Bank examines samples of transactions to ensure compliance, and if, since March 2011, any credit institutions or bureaux de change have been found to have contravened the approved charges and margins; if sanctions have been applied to those credit institutions and bureaux de change; and if he will make a statement on the matter. [31068/14]

Freagraí scríofa

Minister for Finance

Section 149 of the Consumer Credit Act 1995 (as amended) requires that credit institutions, prescribed credit institutions and bureaux de change must make a submission to the Central Bank if they wish to introduce any new customer charges or increase any existing customer charges in respect of certain services. Section 149 does not cover interest rates; it applies to fees and commissions only.

My Department published a report on the review of the regulation of bank fees and charges in December 2013. This contains a detailed description of the process by which the Central Bank makes decisions on whether or not to approve proposed charges. It is available on my Department's website at www.finance.gov.ie.

I understand that the most recent mystery shop of foreign exchange was conducted at end-2008 and details are available on the Central Bank website.

The Central Bank regularly publishes feedback to the industry on topics that it investigates as part of monitoring of compliance with consumer protection requirements, in order to promote compliance within the industry. Where contraventions are identified and settlement agreements reached with regulated firms, details are published on the Central Bank s website at http://www.centralbank.ie/publications/Pages/settlement-agreements.aspx. However, I am informed by the Central Bank that it does not otherwise comment on any individual case or ongoing enforcement action.