Saturday 20 January 2018

What's in the new code?

Charlie Weston

Charlie Weston

THE new rules will force banks and other lenders to try and agree a revised payment plan for people in arrears on debts other than mortgages.

The revised code will also stop credit card and loan companies from harassing people who are behind on payments. Lenders will be allowed to only make three contacts a month.

Other lenders will also have to agree a payment plan with consumers who are in arrears, with other loans and bills owed by the consumer being taken into account.

The new code comes into effect in January.

There will not be a ban on banks being able to dip into one bank account to pay arrears on another, but customers will have to be warned in advance.

Brokers and sales people will have to make greater efforts to disclose what they are being paid, and sales intermediaries will only be able to call themselves brokers if they offer a fair analysis of all products.

The new rules will also mean that if someone is told something orally, which persuades them to buy a product, this will have to be noted in writing.

Irish Independent

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