Consumer Code III

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Information to be Provided

Where a regulated entity makes a change to its terms of business, it must provide any affected  consumer with the revised terms of business as soon as possible.  It must inform the consumer that he or she may request the statements set out below to be provided in paper and must so provide them.

In relation to a term and notice deposit accounts with a balance of more than €20, a credit institution must at least annually provide a statement to the consumer which includes the following,

  • opening balance,
  • closing balance,
  • additions and withdrawals,
  • interest credited,
  • charges,
  • tax deducted,
  • tax certificate details
  • interest rates applied to other similar accounts available to the consumer from that institution
  • where the term of the account is less than one year, a closing statement must be provided.

The credit institution must ensure at least 10 days prior to the maturity of a fixed term deposit that it alerts the consumer about its impending maturity and date.  This does not apply to deposits for less than 30 days.

Information re Loans

In relation to loans, a regulated entity must at least annually provide a personal consumer with a statement of account including

  • opening balance
  • outstanding balance
  • transactions
  • interest
  • all charges
  • details of interest applied during the period

A regulated entity must notify affected personal consumers on paper or durable medium of any change in interest rate in the loan.  It must include

  • details of the new rate and old rate
  • date rates changes
  • revised payment amount
  • invitation to a personal customer to contact the lender if he or she anticipates difficulties meeting the higher payment

Mortgages I

In the case for a mortgage where the revised payment has in place under the code of conduct for mortgage arrears, the notification must clearly indicate the revised payment amount required that applies the revised new payment arrangement

A regulated entity must provide notification above at least 30 days in advance of any change in interest rate except in the following circumstances

  • in the case of  tracker interest rates as soon as possible and no later than 10 days after the change in the underlying rate becomes known to the entity in the case of a mortgage loan
  • in the case of other loans, a notification is not necessary provided the change in the interest rate is caused by a reference rate which changes daily or weekly or the new reference rate is publicly available by appropriate means and the information concerning the new reference rate is kept available on the premises of the entity.

Where the credit has been advanced for a personal consumer subject to a guarantee the entity must notify the guarantor on paper or a durable medium if the terms of the credit agreement change

Mortgages II

Where a personal consumer requests a change from an existing tracker rate or is offered an option to move to an alternative rate on an existing loan the lender must provide the personal consumer with the following information in paper or a permanent form

  • indicative comparisons of the cost of the monthly loan repayments at the tracker interest-rate and alternative rates being offered
  • indicative comparisons of the total cost of the loan if the tracker rate has continued and if the new rate is accepted; assumptions must be reasonable and justifiable
  • details of the advantages and disadvantages for the personal consumer of the tracker interest rate compared with the other rate being offered.

There is a required form of warning where a tracker rate is abandoned

The above provision does not apply to a mortgage on a primary residence covered by the code of conduct on mortgage arrears which is in arrears or pre-arrears,

Mortgages III

A regulated entity must allow personal consumer at least a month to consider changes above and advise the consumer of this entitlement.  Where the requirement is waived the regulated entity must receive confirmation from the consumer prior to the change coming into effect that he has been provided with the above-mentioned information, understands it and is waiving the one month period.

Where a regulated entity offers an incentive to a personal consumer on an existing mortgage, it must provide the consumer on paper with the information necessary to consider the offer.  In particular, it must quantify the implications for the consumer in availing of the incentive including a cost comparison of the total cost of the existing mortgage before or after availing of the incentive.

It must set out the length of time during which the incentive is available and the assumptions which must be reasonable and justifiable. It must  set out the advantages and disadvantages of the incentive and include other key information which the personal consumer should have available to him when considering the incentive.  It should include a statement that the personal consumer may wish to seek independent advice prior to availing of the incentive.

Insurance products

An insurance business must issue policy documents within five days of the information being provided by the consumer and cover being underwritten to consumers to whom it sold the insurance policy directly or to any insurance intermediary that sold its insurance policy.  The intermediary must within five business days of receiving the policy documents provide them to the consumer.  This applies to existing policies and renewals.

Where a consumer notifies an insurer of an intention to use an insured vehicle in another state the entity must provide contact details for the appointed claims representative in that state.  Where a secondary market exists for life insurance policy and a consumer seeks information on early surrender the regulated entity must notify the consumer at the same time as it discloses the value of the policy that the secondary market exists and that the policy may be sold on it.

Investment products.

For every investment held with it, a regulated financial services provider must provide annually a statement with at least the following,

  • opening balance,
  • closing balance
  • withdrawals,
  • total sums invested,
  • number of units held,
  • all interest, charges, and deductions affecting the product including charges associated with management sale, set up an ongoing administration
  • closing balance and statement or statement of value

A producer of a tracker bond must issue a statement within five days of the start of the bond to a consumer to whom it sold the bond or to an intermediary setting out

  • name and address of consumer,
  • date of investment,
  • amount of investment,
  • date on which minimum payment is payable,
  • disclosure of the make-up of investment if it differs from the key features document
  • date of maturity
  • date of maturity, any right of cancellation applicable

It is sent to the intermediary and the intermediary must within five days of receiving the document, provide it to the consumer who purchased the tracker bond

Charges

A regulated entity must notify consumers of increases in charges specifying the  old and new charge or the introduction of new charges within 30 days before the change takes  effect.  Where charges are accumulated and applied periodically, it must notify at least 10 days prior to deduction of charges and give each consumer a breakdown of charges except where the amount is €10 or less.

A regulated entity must notify on paper or other durable medium consumers who have been charged penalty charges including surcharge interest and the methods by which they may be mitigated.