Dáil Éireann Debate, Thursday - 28 April 2022
41. Deputy Richard Bruton asked the Minister for Finance if he has assessed the support to consumers in rearranging their affairs as banks exit the Irish market; and if he has discussed the matter with the Central Bank. [21003/22]
Amharc ar fhreagraIt is a key priority for the Minister for Finance and the Central Bank of Ireland that customers receive the appropriate support in rearranging their affairs as certain banks exit the market.
Officials met with the Central Bank on 19 April 2022 to discuss the withdrawal of Ulster Bank and KBC from the market and in particular the support required for consumers in moving their accounts to other financial service providers. These meetings will continue on a monthly basis.
The Central Bank and the Minister expect all retail banks to have plans in place to manage the impact of the broader changes and consolidation in the retail banking sector in Ireland. On 25 June 2021, the Central Bank engaged with all banks on its expectations of how they manage issues and consumer risks during this period of change, and it is actively monitoring compliance with these expectations.
It is the responsibility of the individual banks to ensure that they are putting their customer first, ensuring fair treatment of customers and that customers understand what the changes mean for them.
In particular banks are required to:
- Be transparent and clear in communications, communicating effectively and in a timely manner with all affected customers across all channels (e.g. in person, advisory, digital etc.), providing them with sufficient information and avoiding risk around information overload.
- Provide as much notice as possible on account closures, product/service withdrawals etc.
- Consider specifically the impact of their decisions on vulnerable customers and provide the assistance necessary to reasonably mitigate those impacts and retain access to basic financial services.
I have been informed by the Central Bank that this week it wrote to the CEOs of the five main retail banks to set out its expectations on some key items related to the account migration process. The purpose of these letters is to reinforce and, to any extent necessary, clarify the application of the expectations set out in the Central Bank's previous letter of June 2021. The letter also includes an invite to a roundtable meeting, hosted by Director General, Financial Conduct, Derville Rowland on the following five key issues/risks:
- Notice periods
- Application of the switching process
- New provider making commercial decisions in a manner that facilitates a customer making and executing a switch
- Direct debit originators and/or other service providers
- Vulnerable customers
The Department of Finance is also engaging with the Competition and Consumer Protection Commission, and the Banking and Payments Federation of Ireland to ensure a cohesive approach regarding consumer protection and information provision.
Officials are also meeting with other current account providers including Credit Unions and An Post to discuss how they can support customers that need new accounts because of the withdrawal of both Ulster Bank and KBC.
