Consumer protection - Banks who rob public must pay

The new regulations drawn up by the Financial Regulator to protect bank customers by banning what amounts to high-pressure selling tactics are largely a reaction to overcharging by several banks.

A total of more than €120 million is to be refunded to customers as a result of the overcharging scandals. If bank raiders robbed a bank of that much money, it would cause an international sensation. The Irish banks have, by their conduct, given a whole new meaning to the term bank robbery.

Nobody has ever been held responsible for robbing the €120 million. In other countries bank officials would have gone to jail for such conduct. We should at least be asking if those responsible here were actually paid bonuses for their misbehaviour? The Consumer Protection Code requires banks to get to know their customers well by seeking all relevant details about their finances. Hopefully, the new regulations preventing bank officials from cold-calling on customers will not defeat the purpose of getting to know them better.

The updated code also provides some welcome extra protection for consumers in dealing with insurance companies, and will require that those advertising financial products will have to set out explicitly all fees and charges.

It is therefore important that the new regulations should be properly implemented, so that they are seen as more than just cosmetic changes to divert focus from those who defrauded their customers for so long.