Consumers ‘obstructed’ from changing banks
As the Oireachtas Finance and Public Service Committee considered evidence gathered from presentations made by the major banks and other interested parties, Fine Gael’s finance spokesman Richard Bruton said it was not acceptable that customers were being obstructed from changing banks easily.
There was no code of practice regulating the issue in Ireland, which restricted the ability of ordinary customers to shop around, he said.
“There should be automatic rules that they immediately set up quick and easy transfers if a customer wishes to move an account to another bank,” he said.
Mr Bruton also urged the committee, due to publish its report next month, to recommend an independent body or inspector to establish the real extent of bank mark-ups.
Sinn Féin’s Caoimhghín Ó Caoláin said the State should also step in to legislate for the easy movement of accounts if necessary.
“There should be legislative measures to allow the transfer of accounts,” he said, adding that there were a whole range of obstacles in the way of doing so.
“There is no real competition and that is a major problem for Irish customers and that needs to be addressed,” he said.
He also urged increased powers for the new industry watchdog, the Irish Financial Services Regulatory Authority and suggested the director of consumer protection be allowed to “remove a product that is found to be unfair or unbalanced”.
Mr Ó Caoláin said the Government’s Money Advice Bureau Service should have increased powers and support to enable it to have an expanded role.
Joan Burton, Labour’s finance spokeswoman, urged the committee to recommend the true cost of bank products and services be made readily available to customers instead of being hidden in the small print.
There should also be strict rules forcing banks to pass on European Central Bank cuts in interest rates to customers instead of increasing profit margins by pocketing the difference, she said.
