Brendan Burgess
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Update: I have replaced the Indo article with the Central Bank press release and edited the thread title accordingly.
www.centralbank.ie
Since 2022, under legislation, new credit card accounts cannot have an Annual Percentage Rate (APR) of greater than 23%. A review by the Central Bank of Ireland has found that, of the approximately 1.3 million credit card accounts in Ireland, over 400,000 are on APRs above 23% that pre-date this legislation. These customers may not be aware that they could get a cheaper rate on another product.
The review also identified other issues including poor handling of customer complaints, issues in how credit cards are marketed to customers, and limited supports provided to customers in financial difficulty. The Central Bank is following up directly with firms on these issues to ensure that appropriate actions are taken to address the findings of the review, including making customers on these higher interest rates aware of their options. In its letter to firms (PDF 118.59KB) the Central Bank also describes instances of good practice identified in some firms, which firms across the sector could follow.
Speaking on publication Director of Consumer Protection Colm Kincaid, said: "We completed this review of customer supports for credit card lending in the context of our ongoing work to ensure firms are supporting consumers in the face of cost of living challenges. On finding so many customers are on historic high rates, we have told relevant lenders to take action to make customers aware where they have these higher rate accounts, and to support them to consider options available to them if they wish to make a change.
"Taking some simple actions could result in real savings for consumers. If you are a credit card customer, there is no need to wait until you are contacted by your provider. Check your credit card statement now and see if your firm, or another, can offer you a better rate. For many of us, this is the biggest spending time of the year, and credit cards are an important part of the market in offering consumers payment choices – but don’t leave yourself paying more than you have to. To support consumers, we have published information on our Consumer Hub with details on what to consider when looking at credit cards.
"The review also highlighted other issues linked to customer services and supports, which is consistent with similar issues we have seen in other reviews this year. Customer service levels in regulated firms will continue to be a priority focus for the Central Bank into 2025. There is a lot firms can do a lot at a practical level to make improvements to deliver the service consumers rightly expect."
Central Bank review finds over 400,000 credit cards are on historic high interest rates
Since 2022, under legislation, new credit card accounts cannot have an Annual Percentage Rate (APR) of greater than 23%. A review by the Central Bank of Ireland has found that, of the approximately 1.3 million credit card accounts in Ireland, over 400,000 are on APRs above 23% that pre-date this...
Since 2022, under legislation, new credit card accounts cannot have an Annual Percentage Rate (APR) of greater than 23%. A review by the Central Bank of Ireland has found that, of the approximately 1.3 million credit card accounts in Ireland, over 400,000 are on APRs above 23% that pre-date this legislation. These customers may not be aware that they could get a cheaper rate on another product.
The review also identified other issues including poor handling of customer complaints, issues in how credit cards are marketed to customers, and limited supports provided to customers in financial difficulty. The Central Bank is following up directly with firms on these issues to ensure that appropriate actions are taken to address the findings of the review, including making customers on these higher interest rates aware of their options. In its letter to firms (PDF 118.59KB) the Central Bank also describes instances of good practice identified in some firms, which firms across the sector could follow.
Speaking on publication Director of Consumer Protection Colm Kincaid, said: "We completed this review of customer supports for credit card lending in the context of our ongoing work to ensure firms are supporting consumers in the face of cost of living challenges. On finding so many customers are on historic high rates, we have told relevant lenders to take action to make customers aware where they have these higher rate accounts, and to support them to consider options available to them if they wish to make a change.
"Taking some simple actions could result in real savings for consumers. If you are a credit card customer, there is no need to wait until you are contacted by your provider. Check your credit card statement now and see if your firm, or another, can offer you a better rate. For many of us, this is the biggest spending time of the year, and credit cards are an important part of the market in offering consumers payment choices – but don’t leave yourself paying more than you have to. To support consumers, we have published information on our Consumer Hub with details on what to consider when looking at credit cards.
"The review also highlighted other issues linked to customer services and supports, which is consistent with similar issues we have seen in other reviews this year. Customer service levels in regulated firms will continue to be a priority focus for the Central Bank into 2025. There is a lot firms can do a lot at a practical level to make improvements to deliver the service consumers rightly expect."
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