Dáil Éireann Debate, Thursday - 8 September 2022
406. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to ensure individuals and families affected by the cost-of-living crisis are facilitated in engaging with licensed and regulated bodies for the provision of loans and credit. [43796/22]
Amharc ar fhreagraThe supervision of regulated financial service providers is a matter for the Central Bank of Ireland. In that context, the Central Bank has indicated that it expects all regulated firms, including those involved in the provision of credit, to take a consumer-focused approach and act in their customers’ best interests at all times.
Provision 2.1 of the Consumer Protection Code 2012 (the Code) states that a regulated entity must ensure that in all its dealings with customers and within the context of its authorisation, it acts honestly, fairly and professionally in the best interests of its customers and the integrity of the market.
In addition, the Code imposes ‘Knowing the Consumer and Suitability’ requirements on regulated entities. Under these requirements regulated entities are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower. The Code specifies that the affordability assessment must include consideration of the information gathered on the borrower’s personal circumstances and financial situation.
However, it should be noted that the decision to grant or refuse credit remains a commercial decision for regulated entities, within the parameters of the regulatory framework.
