Banks and credit companies will be banned from offering pre-approved loans and bundling payment protection insurance with loans under proposals published by the financial regulator.
IFSRA today published a draft consumer code as part of the consultation process with the financial institutions that it hopes will be completed by the end of the year.
As well the banning of pre-approved credit the code requires financial firms to explain product recommendations in writing and to establish a standardised complaints procedure.
The increasingly popular trend of refinancing must include details of the total cost of credit of the consolidated loan together with total cost of continuing to service existing loans - such as mortgages.
The code also proposes the extension of the 15-day renewal notices currently required for motor insurance to other forms of non-life insurance.
The inclusion of warning notices on advertisements to ensure that the customer is aware of risks and all fees and charges
The code also contain specific rules in relation to the advertising of tracker bonds, including the provision of a document about the make-up of the investment. These rules have been incorporated into the draft code in response to feedback from a public consultation on the marketing and sale of trackers.
The Consultation Paper Consumer Protection Code has been published and is available on www.ifsra.ie .
Copies the paper are also available by telephoning 1890 923802.
The final date for receipt of submissions is April 15th 2005. Submissions received will be made publicly available on IFSRA's website after the consultation period.