My colleague, the Minister for Finance and Public Expenditure and Reform, Mr. Paschal Donohoe, TD, commissioned Mr. Michael G. Tutty to conduct a review of the current Personal Contract Plan (PCP) market and, in particular, to consider the adequacy of existing consumer protection in relation to PCPs in June 2018. Mr. Tutty’s report was published on the website of the Department of Finance on 1st November 2018.
This report builds on previous publications including the report by the Competition and Consumer Protection Commission (CCPC) into the personal contract plan car finance market which was the first comprehensive study of the PCP market in the state published on 6th March 2018.
The CCPC’s report made a number of recommendations, which included a call for PCP agreements to be brought within the scope of the Central Bank’s Consumer Protection Code, thus mirroring the protections afforded to consumers when they take out other forms of credit. Under the current regulatory framework, those arranging PCP products are not required to check the affordability or suitability of the consumer before selling them a PCP product.
This recommendation is echoed by Mr. Tutty in his report which suggests that the relevant sections of the Central Bank’s Consumer Protection Code should apply to PCPs and that consideration could be given to the provision of an authorisation system for PCPs if it is not possible to bring PCPs within the Consumer Protection Code. Mr. Tutty recommends that it is for the credit provider rather than the PCP intermediary to check the financial capacity of customers who wish to partake in a PCP contract.
Officials from my Department met with Mr. Tutty as did representatives from the CCPC as set out in his report.
I am aware that the recommendations are currently under consideration by the Department of Finance and the Central Bank, which are the relevant bodies with policy responsibility for the matters concerned. My Department will continue to engage with officials from the CCPC and the Department of Finance as required.
