Banks urged to stop ‘targeting’ clients by monitoring accounts
The Professional Insurance Brokers Association (PIBA) said that it is time for fair play to be at the “heart of regulation” adding that it would be “perverse” if the laws of the land were to allow the banks to continue to market consumers on the basis of the private account information they hold.
PIBA’s chief executive, Diarmuid Kelly, said: “Unless it is comprehensively and unequivocally addressed we will continue to see the perpetuation of a two-tier financial system where one law applies to the banks and another to everyone else.
The recent Data Protection Commission report found that in several institutions investigations revealed banks were marketing customers on the basis of information contained in their direct debits, such as a monthly payment to another financial institution or a payment to the life branch of an insurance company.
The PIBA said it is urging the Central Bank to address the practice in the forthcoming revised consumer protection code.
PIBA, which represents over 850 independent broker firms, said it has raised the issue with the Central Bank over the past number of years.
“The Central Bank should issue a circular to all credit institutions prohibiting this practice.
“It previously advised that this practice was not prohibited by the consumer protection code provided the contact was made in compliance with the unsolicited contact rules of the code.
“We have continuously indicated that this response was unsatisfactory as clearly these financial institutions which are in a privileged position are abusing their position by aggressively targeting clients in this manner. Our members advise that this practice is widespread at present,” said Mr Kelly.
