Consumers should expect more information regarding interest rates, fees and charges imposed by financial institutions following the introduction of a voluntary code of practice yesterday.

The new code was developed by industry bodies and consumer regulators in response to revelations in 1998 that National Irish Bank had systematically overcharged its customers. The excessive amounts paid by customers included fees, charges and rates of interest imposed on their accounts, according to the Minister of State for Consumer Affairs, Mr Tom Kitt.

The code is a self-regulating measure designed to restore consumer confidence in the financial industry.

Under the code, participating financial institutions must provide customers with specific information regarding their fees and charges. Depending on the product, information must be provided verbally or in writing.

Credit institutions must establish internal procedures for dealing with complaints on interest and charges. When a case of overcharging is established, credit institutions will repay the overcharged amount in current value terms.

Since the 1995 Consumer Credit Act, Irish financial institutions must notify and seek approval for charging adjustments from the Director of Consumer Affairs. Charging customers above these amounts was illegal, said the director, Ms Carmel Foley.

Notification of these charges within branches is not compulsory under the new code. Instead, institutions must display notices advising customers how to access information on charges for standard products and services. This information will include, in the case of current accounts, how such charges may be reduced. Information on charges for non-standard services will be given as a matter of course when these services are requested.

When a participating institution fails to adhere to the code, the transgression will be publicised, Ms Foley said.

All institutions must fully apply all the terms of the code by October 2nd of this year. Every member of the Irish Bankers' Federation, the Irish Mortgage and Savings Association and the Irish Finance Houses' Association has signed up to the code.

The Ombudsman for Credit Institutions, an earlier self-regulation measure by the industry, will examine the new code when considering complaints from customers.