The Central Bank has published a new consumer protection code aimed at modernising the set of rules that businesses must abide by when dealing with consumers.
The regulator said the code “reflects the way financial services are provided in a digital world”.
It enhances consumer protections in areas such as digitalisation, mortgage switching, fraud and scams, as well as greenwashing.
The updated code follows an OECD review of consumer protection in Ireland late last year, which recommended more customer engagement by the Central Bank when devising policies, and other measures to beef up consumer protection.
Under the changes announced today, firms will have to be customer-focused when designing and implementing digital services.
They will also have to meet new disclosure requirements on switching options and the cost of incentives on the overall cost of credit of a mortgage.
Meanwhile, companies will have to ensure customers can have no impression or misunderstanding that they are purchasing regulated products and services, where that is not the case.
Under the revised code, companies must also be vigilant of the evolving risks of frauds and scams, and take appropriate actions to protect customers.
To tackle the risk of greenwashing, firms will be required to ensure they communicate clearly on climate and sustainability features of products.
Firms have a year to put the revised code in place, and so the provisions will apply from March 2026.
It follows a review that included a discussion paper, public survey, public consultation and engagement with consumer and industry stakeholders.
Central Bank Governor Gabriel Makhlouf said that “the ways in which we as consumers buy, use and engage with financial services are changing significantly”.
“These changes reflect new preferences, provide new opportunities and meet different needs on the part of individuals, households and businesses. But they also create new challenges and new risks in the financial sector that we supervise and for the consumers we protect. In the face of this changing ecosystem, we need to adapt, evolve and transform.”
Article Source – Central Bank announces new consumer protection code – RTE
