Dáil Éireann Debate, Thursday - 16 June 2022
73. Deputy Pearse Doherty asked the Minister for Finance the interactions that he has had with the retail banks and an organisation (details supplied) since the beginning of April 2022; if his attention has been drawn to the manner in which banks are operating the switching code and communicating with direct debit originators; and if he will make a statement on the matter. [31249/22]
Amharc ar fhreagraOn my engagement with the entities referenced by the Deputy, the Retail Banking Dialogue in Tullamore on 16 May 2022 provided an opportunity for me to engage with different parties including those referenced to share views on the changing banking landscape. I would add that in my engagements with the banking system since the announcement last year of the exits of KBC and Ulster Bank I have made clear my expectation for them to take a consumer-focused approach in respect of any decision that affects their customers.
In addition my officials have been meeting with each of the withdrawing banks on a monthly basis. They are also meeting with the remaining banks and other financial service providers that offer current accounts to discuss how they can support customers opening new accounts.
The challenges for customers in the process of moving their accounts and how these an be mitigated is a regular feature of these discussions.
Department officials are also engaging regularly with the BPFI, Central Bank of Ireland and the Competition and Consumer Protection Commission to ensure a cohesive approach regarding consumer protection and information provision.
The Central Bank Code of Conduct on the Switching of payment accounts with Payment Service Providers (“The Switching Code”) sets out the process that all Payment Service Providers (including banks) that offer payment accounts in Ireland are required to follow when a consumer wants to switch accounts.
This includes making a switching pack available to customers, timelines for completing the switching process and the actions to be taken by both the existing and new payment service provider when the customer seeks to initiate the switching process.
I understand from the BPFI that banks and other BPFI members have now created a secure email process to facilitate secure communications between the old and new banks. The BPFI is also facilitating regular engagement between the leaving and remaining banks and other relevant parties.
I have also been informed by the Central Bank of Ireland that it has written to the CEOs of the top direct debit originators which it regulates to reinforce their duty to take action to ensure this exercise is completed efficiently.
The Central Bank and I expect all retail banks, both those exiting the market and those remaining, to have plans in place to manage the impact of the broader changes and consolidation in the retail banking sector in Ireland. 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.
My officials and I will continue to monitor the migration of current accounts from the exiting banks and engage with relevant stakeholders, both public and private, as I have been doing over recent months. With the objective of ensuring that impacted customers face the least amount of disruption in migrating their accounts over the coming months.
