Central Bank of Ireland Investigations

Dáil Éireann Debate, Tuesday - 10 March 2015

Tuesday, 10 March 2015

Ceisteanna (209)

John Halligan

Ceist:

209. Deputy John Halligan asked the Minister for Finance further to previous questions tabled in Dáil Éireann regarding this issue, the progress to date regarding the Central Bank of Ireland's investigation into the misselling of payment protection insurance policies; the number of companies that were ordered to write to their customers; the number of customers per company that were to be written to; the estimated number of customers who will be eligible to receive refunds; his views that the process of contacting customers and gathering the relevant information is moving as swiftly as possible; if he will acknowledge that time is of the essence in certain cases, where the statute is in danger of running out; his plans to intervene and ensure all customers are provided with the opportunity to lodge complaints and have their individual cases investigated; and if he will make a statement on the matter. [10248/15]

Freagraí scríofa

Minister for Finance

I have been informed by the Central Bank that, following the conclusion of its investigation, the Central Bank issued its Summary Report of its Payment Protection Review ("the PPI Review") in March 2014. The PPI Review included the sales by 11 credit institutions since July 2007.

I have also been informed by the Central Bank that it is continuing to engage with smaller entities that sold PPI including Credit Unions.

To date this has resulted in a total refund of €69.5 million (including €6.1 million in interest). Around 83,490 policies have been refunded. The Central Bank stated in March 2014 that 22% of consumers were covered by refunds.

Firms were required to demonstrate that their PPI sales were in compliance with the Consumer Protection Code. This included requirements to assess and evidence suitability and eligibility and to check that claims were not declined for reasons which the seller should have identified during the sales process.

As part of the overall PPI review, all consumers were written to by firms participating in the review giving them the opportunity to complain to the Financial Services Ombudsman if they were unhappy with the findings of the individual review of their PPI policy.

Consumers who are still unhappy with any aspect of the sale of PPI should refer their complaints to the Financial Services Ombudsman.

The summary report, along with a Q&A document are available on the Central Bank website at the links below:

http://www.centralbank.ie/press-area/press-releases/Pages/CentralBankreportsonthePaymentProtectionInsurancereview.aspx.