Dáil Éireann Debate, Tuesday - 20 June 2017
191. Deputy Niall Collins asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the regulatory framework surrounding consumer protections in the case of personal contract plans, PCPs, used to finance motor purchases; the regulatory role the Competition and Consumer Protection Commission, CCPC, has in this regard; and the data which is collated on PCPs by the CCPC. [28404/17]
Amharc ar fhreagraThe Competition and Consumer Protection Commission (CCPC) is responsible, under the Consumer Credit Act 1995, for the authorisation of credit intermediaries, some of whom sell Personal Contract Plans (PCPs) to consumers on behalf of a finance company. The CCPC issues licenses to credit intermediaries and keeps an online list of credit intermediaries holding a valid authorisation at the time of enquiry. The CCPC also deals with complaints about the advertising of credit agreements and the advertising of car finance on credit intermediary websites and in the media. It is important to note that the CCPC’s remit is limited to this licensing role, as opposed to a more complex and robust regulatory role like the Central Bank has for financial institutions.
It is worth recalling that the majority of the financial institutions that offer finance through credit intermediaries are already regulated by the Central Bank. However, the Central Bank’s Consumer Protection Code does not apply to hire purchase or PCPs. This is significant as the Central Bank’s Consumer Protection Code (in particular, Chapter 5) requires regulated financial services providers to “know their customer” in terms of assessing affordability and suitability of products covered by the Code.
I am aware that the CCPC (and previously, the National Consumer Agency) has made numerous efforts to have hire purchase formally defined as a financial product and thereby brought within the Central Bank’s regulatory regime so that PCP (and hire purchase) would be subject to the same regulatory requirements as those that apply to all other financial products sold to consumers in Ireland.
Separate to the licensing role outlined above, the CCPC has a specific statutory remit to provide personal finance information and education to assist consumers to make informed decisions. The CCPC has, on a number of occasions, conducted research into the car market and car finance sectors, and has conducted numerous public awareness campaigns on the issue of car finance in recent years. Its current campaign, which commenced on 5 June, focuses on car finance and specifically aims to provide information to consumers on issues in relation to PCP, such as the fact that the consumer does not become the legal owner of the car until they make the final payment.
I am aware that the CCPC plans to conduct further research into PCP in the second half of this year. The results will be used to clarify the specific issues that consumers encounter in the car finance market. I am advised that it is the CCPC’s intention that the research can be used by all interested stakeholders to provide an evidence base from which appropriate policy proposals can be developed to ensure that consumers are adequately protected and businesses adequately scrutinised in this important market.
