Dáil Éireann Debate, Tuesday - 29 May 2018
201. Deputy Eugene Murphy asked the Minister for Finance if the case of a person (details supplied) who has to pay 27% of the amount of their car insurance premium on top of the quotation due to the fact the person wishes to pay by direct debit will be investigated; and if he will make a statement on the matter. [23608/18]
Amharc ar fhreagraAt the outset, it is important to say that the circumstances in which the additional charge referred to in this question may arise are not clear from the question. The European Union (Payment Services) Regulations 2018, which transposed the revised Payment Services Directive, prohibit a payee from requesting an additional charge from a consumer for using a SEPA direct debit. However, it is possible to apply other charges; for example an administrative fee, a service fee, or a fee where payment is made by instalments.
The Deputy should also note that as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, neither I nor the Bank are in a position to direct insurance companies as to the pricing level or terms or conditions that they should apply in individual cases.
However, the Central Bank is responsible for ensuring compliance with the Consumer Protection Code 2012 (the Code). In relation to charges, the Code requires that a regulated entity in all its dealings with customers and within the context of its authorisation, makes full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer (Provision 2.6). In addition, prior to providing a product or service to a consumer, a regulated entity must provide the consumer, on paper or on another durable medium, with a breakdown of all charges, including third party charges, which will be passed on to the consumer (Provision 4.54 (a)).
Where a consumer is not satisfied with the level of charges being applied under the terms and conditions of the contract with an individual regulated entity, he/she should consider shopping around for alternative cover.
If someone has a complaint about a regulated financial institution, they should first discuss it with the financial institution concerned. Under the Central Bank’s Consumer Protection Code, all regulated financial services firms must have a complaints handling procedure in place.
Where a person has exhausted the complaints handling process in the institution and is not satisfied with the response, he/she has the right to refer the complaint to the Financial Services and Pensions Ombudsman (FSPO), which is a statutory independent body.
More information on this complaints process is available on the Central Bank’s website at: https://www.centralbank.ie/contact-us/make-a-complaint.
