Madam, – As we continue to grapple with the consequences of regulatory failure in our banking system, there is a real risk that consumer protection may come to be seen as something of a luxury rather than as an integral part of the recovery process. In this context, the proposal in the Central Bank Reform Bill to abolish the office of Consumer Director and the Consumer Consultative Panel is ill-judged (Business Today, March 31st).
Although the Financial Regulator’s office has, justifiably, been criticised for its failures in prudential regulation, the consumer protection aspects of the office have perhaps not received the plaudits they deserved. The Consumer Protection Code provides a unique framework for the protection of consumers of financial services.
Unlike most countries where consumer protection codes are voluntary and administered by the industry itself, the Irish code combines the possibility of enforceable action with the flexibility and responsiveness of a code of practice.
Equally importantly, the office of Consumer Director and the Consumer Consultative Panel meant that, for the first time, the voice of the Irish consumer had to be listened to and consumer concerns had to be addressed, not as something ancillary but as a core component of developing policy. With the proposed abolitions, there is real possibility that the consumer will once again be sidelined.
As the European Commission’s consumer protection strategy recognises, markets in financial services cannot function properly without consumer confidence. Consumer confidence in our battered financial services system cannot be restored without a high-profile and effective framework for consumer protection.