The Central Bank advises that Provision 6.12 of the Consumer Protection Code 2012 states that, where a regulated entity offers an incentive to a personal consumer on an existing mortgage, the regulated entity must provide the personal consumer, on paper or on another durable medium, with the information needed to consider the incentive offered.
This information must:
Quantify the implications for the personal consumer of availing of the incentive including an indicative cost comparison of the total cost of the existing mortgage if they do not avail of the incentive and the total cost of the mortgage if they avail of the incentive;
Clearly set out the length of time during which the incentive will be available;
Clearly set out any assumptions used, which must be reasonable and justifiable;
Set out the advantages and disadvantages to the personal consumer of availing of the incentive;
Include other key information which the personal consumer should have available to them when considering the incentive; and
Include a statement that the personal consumer may wish to seek independent advice prior to availing of the incentive.
On June 20, the Central Bank published a new addendum to the Consumer Protection Code 2012, which will take effect from 1 January 2019. The Bank advises that the addendum extends the transparency requirements set out in Provision 6.12 above to all mortgage holders i.e. for new, existing and switching mortgage holders.