Borderwise Booklets

Issue 1

 

10^TH January 2007

 

 

Going South – Financial Services

 

 

© NIACAB (Northern Ireland Association of Citizens Advice Bureaux)

 

This booklet provides general information on the financial services which are available in the Republic of Ireland. It provides information on opening bank accounts, borrowing money and how financial services are regulated in the south.

 

S 11 Going South   -       Financial Services

 

This factsheet describes the financial services which are available in the Republic of Ireland. It provides information on opening bank accounts, borrowing money and how financial services are regulated.

The information in this leaflet was compiled in October 2007.

Financial Services

The financial services sector in the South is broadly similar to that in the North.  Financial services are provided by banks, insurance companies, building societies, credit unions and post offices.  The Irish Financial Services Regulatory Authority (IFSRA) is the main regulatory authority for the sector and is most commonly referred to as the Financial Regulator.

Opening a bank account

If you have a job or you are getting social welfare it is important to have a bank account, so that money can be paid into your account. Having a bank account means that you can pay bills from your account and save money and makes it easier to manage your money.

There are two main types of accounts:

• A current account allows you to make day-to-day transactions (i.e., paying a bill, receiving your salary straight to the account, making transactions etc.). These are offered only by banks and building societies

• A deposit account allows you to build up savings and you may earn

Interest on this money. These are offered by most financial services firms

banks, building societies and Credit Unions

Once you have chosen the bank account you want, contact your local branch to open an account. You will need to prove your identity and address. There are a number of ways you can do this by providing the following:

·        Passport

·        Current Driving Licence

·        Identification card with photograph issued by an Garda Siochana

      Recent original utility (for example electricity, gas or telephone) bill 

       ·        Recent original bank statement issued in your name

Switching Bank Accounts

If you are unhappy with the service you are getting, or you think you are paying too much for banking services, you can easily switch to a new bank or building society. If you decide to change your account to another Financial Institution you will need to:

·        Contact the bank or buildings society where you want to open your new account. They will supply you with a switching pack. This contains a step-by-step guide to what you need to do.

·        Once your new bank or building society has approved your application for an account, it will be up and running within ten working days.

·        Your new bank will ask you to complete a Transfer of Account form. They will send this form to your old bank, which will supply details of your direct debits, standing orders etc.

·        Your old bank will close your account once they have passed this information to your new bank. This second stage should be completed within a further seven working days.

The major financial institutions have agreed a code of conduct to facilitate consumers who wish to charge from one institution to another.  This is available at www.ibf.ie

Borrowing Money

Once your lender agrees the term of your loan, they will work out your set monthly repayment, and you must pay at least that amount to clear your loan in the agreed time. With most loans your monthly repayment covers interest for that month and also pays something off the amount borrowed. So, your loan balance goes down each month.

In the case of credit union loans, part of your repayment also goes into building up a savings balance so less of your repayment is used to pay off the loan. This means that while your savings are growing, your balance does not reduce as quickly as it would if your full repayment went into the loan. So, a credit union loan could work out more expensive than a loan at the same rate from a bank or building society.

The annual percentage rate (APR) charged by your bank or finance company usually ranges from 8.0% to 15% for loans above €2,500

You may get further information from the Financial regulator or the Office of the Director of Consumer Affairs (see below).

Financial Regulator

The Financial Regulator is responsible for the regulation of all financial services firms in Ireland. Its primary function is to ensure consumers of those firms are protected. The main tasks of the Financial Regulator are:

• Help consumers to make informed decisions on their financial affairs in a safe and fair market; and

• Foster sound, growing and solvent financial institutions which give consumers confidence that their deposits and investments are secure

The Financial regulator does not regulate the following:

• pawnbrokers and credit intermediaries (stores offering credit for goods) – they are regulated by the Office of the Director of Consumer Affairs.  

• occupational pensions and Personal Retirement Savings Accounts (PRSAs) – they are regulated by the Pensions Board

The Financial Regulator has specific functions in relation to consumer protection. It is obliged to promote the best interests of the users of financial services in a way which is consistent with the orderly and proper functioning of financial markets and the orderly and prudent supervision of the providers of financial services. It is also obliged to take action to increase awareness among consumers of the financial services that are available and of the costs, benefits and risks associated with these services.

The Regulator has produced a number of Consumer Codes of Conduct and Consumer guides on various topics such as personal loans and mortgages.   These codes are available on the website (see below). 

You may complain to the Regulator about, among other things, bank charges, harassment of customers, failure to abide by rules in relation to cooling off periods.  The regulator does not award compensation but it does have the power to impose sanctions on a financial services provider if it is in breach of the rules.

The Financial Regulator

Irish Financial Services Regulatory Authority (IFSRA)

PO Box 9138, College Green, Dublin 2

Tel: 01 410 4000
www.ifsra.ie

Consumer helpline: 1890 200 469

Consumer website:  www.itsyourmoney.ie

The Office of the Director of Consumer Affairs (ODCA) is responsible for the enforcement of a wide range of consumer protection legislation. This includes misleading advertising, misleading price indications, price display order, product pricing, food labelling, footwear and textile labelling, product safety, E-commerce, distance selling, package travel, unfair contract terms and timeshare. The role of the Office is to give information and guidance to consumers on their statutory rights. The Office does not intervene or become involved in individual issues or disputes between consumers and sellers of goods or service providers. The National Consumer Agency (see leaflet S10 Going South - Consumer Issues) will take over the above functions of the ODCA.

The Office of the Director of Consumer Affairs
4 Harcourt Road, Dublin 2.
Tel: (01) 402 5500 Consumer enquiries: Tel: (01) 402 5555
Locall: 1890 220 229 (for calls outside (01) area)
www.odca.ie

Financial Services Ombudsman

The Financial Services Ombudsman deals with individual complaints against providers of financial services. 

You may complain to the Ombudsman about any of the following:

• Banks
• Building Societies
• Insurance Companies
• Credit Unions
• Mortgage, Insurance and other credit intermediaries
• Stockbrokers
• Pawnbrokers
• Moneylenders
• Bureaux de Change
• Hire Purchase providers
• Health insurance companies

The Ombudsman has the power to order financial institutions to do certain things and to pay compensation to complainants.

 

FIN-NET: Out-of-court Complaints Network for Financial Services

FIN-NET is an EU wide out-of-court complaints network for financial services.  This network has been designed particularly to facilitate the out-of-court resolution of consumer disputes when the service provider is established in an EU Member State other than that where the consumer lives. FIN-Net aims to:

·        Provide you with easy and informed access to out-of-court redress in cross-border disputes

·        Ensure the efficient exchange of information between European schemes that your cross-border complaints can be handled as quickly, efficiently and professionally as possible

·        Ensure that out-of-court dispute settlement schemes from different European Economic Area countries apply with a common set of minimum guarantees for consumers

A guide to the network is available at:

http://europa.eu.int/comm/internal_market

 

Money Advice and Budgeting Service (MABS)

If you are having difficulties in managing your money you may be able to get help from The Money Advice and Budgeting Service (MABS).  MABS provides a free service for people with debt or money management problems.   There are MABS offices around the country.

Money Advice and Budgeting Service (MABS)
c/o Department of Social Welfare
Aras Mhic Dhiarmada
Store Street
Dublin 1.   

MABS Helpline: 1890 28 3438

Website: www.mabs.ie