Effect of Code Courts have approached the question of whether Codes of conduct establish enforceable legal rights in different ways, specifically in legal proceedings, either through claims or defences. Most Codes and the legislation under which they are made, do not explicitly state their intended legal effect. The primary consequence of a Code lies is that it is a regulatory obligation upon financial service providers. […]
Scope of Licensing Consumer credit is regulated. In most cases, providers must be licensed or authorised by the Central Bank of Ireland. Certain aspects of consumer credit legislation are dealt with in our chapters relating to hire purchase, credit sales, leasing of goods and pawnbrokers. This is because of the focus on the transfer of personal property by way of security or transfer in a […]
Qualified Entities The purpose of the Representative Actions for the Protection of the Collective Interests of Consumers Act 2023 is to transpose Directive (EU) 2020/1828 of the European Parliament and of the Council of 25 November 2020 on representative actions for the protection of the collective interests of consumers and repealing Directive 2009/22/EC; and to provide for related matters. The Act sets out the criteria […]
Key Duties of Fiduciaries The key duties of fiduciaries include the following, duty not to make personal profits duty to account for profits and benefits received duty to act in best interests of the other duty of good faith Fiduciary obligations also imply a duty of care and to use the requisite skill. It entails a duty to maintain confidentiality. When a fiduciary relationship is […]
Retail Hire Regulation The primary objectives of the Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Act 2021 to amend the Central Bank Act 1997 in order to extend the Central Bank of Ireland authorisation requirements to persons carrying on hire-purchase or consumer-hire business or providing credit indirectly and persons carrying on business relating to hire-purchase or consumer-hire agreements or the indirect provision […]
Moneylenders Licensing The Consumer Credit Act applies to moneylenders (now a high-cost credit provider). Moneylenders (now high-cost credit providers) must be licensed by the Central Bank. There are prescribed formats in respect of an application for a moneylending licence. The license authorises the moneylender to operate on such conditions as is specified. Notice of application for the license must be published and objections may be […]
Quotation An entity providing an insurance quotation must include information in the quotation as follows, assuming all the details provided by the consumer are correct and do not change: Amount of quotation, length of time for which it is valid, full name of the underwriter. The entity must set out clearly in the quotation provided any warranties or endorsements that apply. When the quotation is […]
Accounts Before opening a joint account for personal consumers, a credit institution must warn each personal customer of the consequences of operating a -joint account, specify transactions for which the consent of all is not required, ascertain whether statements are to be provided separately to each joint account holders and ascertain any limitations which personal consumers may wish to impose on the account. A regulated […]
The Consumer Protection Code The first comprehensive consumer protection code was introduced in 2006. It updated and greatly expanded a number of existing codes of conduct which applied to distinct sectors such as stockbrokers, investment intermediaries, lenders, and others. The code followed on from a radical reorganisation of the regulation of financial services which took effect in 2004. A new financial regulator (formerly it was […]
Clear and Timely The financial service provider must ensure that all information that is provided to consumers is clear, accurate and up-to-date and written in plain English. The information must be brought to the consumer’s attention. The presentation must not disguise to conceal or obscure important information. Information must be supplied to each consumer on a timely basis. The financial service provider must have regard […]
Deposit Accounts 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 […]