Financial Regulator urges consumers to take note of fees

The Financial Regulator today encouraged consumers to get informed about fees and charges before buying financial products.

Under the Financial Regulator’s statutory Consumer Protection Code, firms must give consumers all the relevant information about a product or service before they buy it, including the terms and conditions and details of any fees and charges that apply.

Research conducted by the Financial Regulator in November 2007 highlighted the importance of this requirement of the code, with 32% of people revealing that they would never ask for a list of fees and charges before buying a product.

“Under the Code, firms must provide you with information on their fees and charges before you buy a product,” said consumer director, Mary O’Dea.

“It is important to make sure you understand this information so that you can make an informed decision. If you are unsure of how the fees and charges work, when they could be applied, or how much the charges would cost, be sure to ask your financial service provider for a full explanation.”

“When you are choosing a financial product, it can be easy to get distracted by how much it will cost you initially, without looking at the additional ongoing fees and charges that could apply.

“However, these charges can add up over time. If you are aware of how much they cost before you buy, you’ll be in a good position to compare products and providers and make a choice based on what is right for you, and offers you the best value”.

Copies of the Financial Regulator’s booklet ‘Consumer Protection Code – Your little red book’ are available to download at www.itsyourmoney.ie.