We do not have a particular preference in relation to this discretion. A deferred debit card is not a product that is widely available in the Irish market and so this requirement of CCD2 will have limited impact on providers. Where a provider does offer such a product, the proposals do not raise any specific concerns.
Yes. Simplifying the process could potentially attribute to swift and efficient resolution of arrears between a lender and the consumer.
Yes. We believe the exemption for interest (and charge) free loans should continue. This exemption currently exists in several pieces of Irish legislation, including the Consumer Credit Act 1995, the existing European Community (Consumer Credit) Regulations 2010 and in the Credit Reporting Act 2013.
No. Reference to the “ease and speed” of accessing credit would seem to imply that the product poses a higher risk or that access is based on an unsound credit decision. It is important to note that this is not the case, as credit assessment criteria is always robust and in line with regulatory requirements. This leads us to believe that Ireland should not prohibit advertising that accentuates the ease and speed of the application or credit process, as to do so may result in unintended impacts on consumers.
In the case of discounts and payment breaks, which would result in a cost to the consumer or which may mask an underlying inability to pay, differentiating such features may warrant consideration.
No. There are sufficient requirements in relation to the provision of information to consumers in Ireland currently, with the Consumer Protection Code set to introduce further related obligations by way of revised requirements in 2025/2026. Furthermore, the European Accessibility Act will prompt adaptation of the manner of explanations when it takes effect in Ireland in June 2025.
Noting the definition of “credit intermediary” in CCD2, it is important to remain mindful that not all credit intermediaries in Ireland are regulated by the CBI e.g., motor dealers acting as credit intermediaries are authorised by the Competition and Consumer Protection Commission (CCPC). While it may be outside the scope of this consultation, we believe that this distinction needs to be considered and addressed in the Irish legislation, to give clarity to creditors and credit intermediaries on their respective legal and regulatory obligations under the wider legislative framework.
Yes. This is a useful exemption for lenders, as well as facilitating the provision of credit to consumers.
Yes. This is a useful exemption for lenders, as well as facilitating the provision of credit to consumers.
No. The Central Bank of Ireland (CBI) already has significant governing codes and safeguards in place regarding the provision of independent advice, as applicable to those firms that are regulated by the CBI.
If the use of the terms “independent advice” and “independent advisor” or other similar terms are prohibited where these services are provided by the credit provider or credit intermediary, potential unintended consequences may arise e.g., giving rise to consumers having to incur a cost to avail of sound guidance or advice.
Yes. There should be no change to the existing framework. The relevant framework that currently exists in Ireland provides an important, independent service to consumers and any withdrawal of these services would undoubtedly have a detrimental impact on consumers.
Yes. There should be no change to the existing requirements, which safeguard consumers and protect against the provision of additional credit which could potentially lead to over-indebtedness.
No. Ireland is already subject to stringent rules on the conclusion of credit agreements e.g., as per the Consumer Credit Act 1995.
No. Ireland is already subject to stringent rules on the provision of overdraft facilities, with reference to the requirements set out in the Consumer Credit Act 1995.
Furthermore, we are not aware of issues, in the context of the effectiveness of the current legislation, regarding customers falling into debt from overdrafts and as such, believe there are sufficient protections in place for consumers.
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 of the effectiveness of the current legislation, regarding consumers falling into debt from overrunning and as such, believe there are sufficient protections in place for consumers.
Yes. If there were to be no compensation for broken funding, it could result in the provision of fixed interest rates being discouraged, which would not be in the interests of consumers. In consideration of consumers’ best interests, consumers have the right to discharge on their obligations early, but this may result in break costs i.e., compensation paid by the consumer to the creditor for early settlement of the credit agreement. Compensation does not exceed the actual cost of early repayment, to ensure consumers are not disadvantaged
It is important to note also that existing rights in this regard must be preserved in relation to the operation of Hire Purchase (HP) agreements, which are being brought within scope of CCD2. Specifically, the flexibility provided under S. 52-53 of the Consumer Credit Act 1995 should be preserved or in some way captured within the national transposing legislation in relation to HP agreements.
No. We believe that the controls already outlined are adequate and provide sufficient protection for consumers.
No, given the potential for unintended consequences for consumers and lenders. Credit intermediaries are an important distribution channel delivering a convenient point-of-sale option for consumers, and any ban on commissions may jeopardise the future commercial viability of credit intermediaries.
Furthermore, the Consumer Protection Code sets out clear requirements in relation to intermediary inducements, the payment of commission and avoiding conflicts of interest.
No. Imposing restrictions on the payments from a consumer to a creditor or a credit intermediary prior to the conclusion of a credit agreement may result in unintentional consequences.
We would welcome greater clarity regarding the obligations under this Article as it is unclear regarding the scope of such payments i.e., are such payments intended to refer to fees and charges, repayments or deposits that may be paid to credit intermediaries e.g., in the case of leasing agreements?
Yes. If a customer has defaulted on their repayments and a financial services provider needs to enforce its rights e.g., issue legal proceedings, it should be permitted that the provider can recoup any costs it incurs in relation to such enforcement e.g., legal costs incurred. As long as those costs are reasonable and no higher than necessary, we believe there should be no cap on them. Article 35 (3) refers.
No. To ensure sufficient consumer protection and to avoid consumers becoming over-indebted, qualifying enterprises should be required to meet the regulatory requirements i.e., registration and supervision arrangements.
No. We believe that the existing powers of the Central Bank are sufficient where product intervention is required.