Yes, there should be more protections for overrunning current accounts.
In relation to withdrawing an overrun facility, a notice period of 90 days, instead of the 30 days outlined in Article...
3.14 Article 25(6) of CCD2
Closed19 Sep, 2024, 12:00 - 18 Oct, 2024, 17:00
‘Overrunning’ means a tacitly accepted overdraft whereby a creditor makes available to a consumer funds that exceed the current balance in the consumer's current account or the agreed overdraft facility. In the event of a significant overrun exceeding a period of one month, the creditor should present the consumer without delay with information on the overrun, including the amount involved, the borrowing rate and any applicable penalties, charges or interest on arrears. In the case of regular overrunning, the creditor should offer the consumer advisory services, where available, to help the consumer identify less expensive alternatives, and redirect the consumer towards debt advisory services. Member States may provide for more stringent provisions to protect consumers holding an overrunning. Any such provisions must be in accordance with EU Law.
Question 14 – Should there be more stringent consumer protection provisions above those provided for in Article 25 of CCD2?
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Observations
No. Ireland is already subject to stringent rules on overrunning, with reference to the Consumer Credit Act 1995 and the Consumer Protection Code.
We are not aware of issues, in the context...
The requirements set out under the CCD2 are sufficient to regulate Overdraft facilities, there is not a need for more stringent provisions.