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Doherty welcomes Central Bank move on Variable Interest Rates

21 July, 2016 - by Pearse Doherty TD

Sinn Féin Finance Spokesperson Pearse Doherty TD has welcomed a move by the Central Bank to force banks to give more information to customers regarding their variable interest rate. Deputy Doherty said the move was long overdue and that it will hopefully lead to lower rates for families and homeowners. He also pointed to a similar move for insurance customers being a logical next step.

Deputy Doherty said:

“The move today by the Central Bank to force banks to provide more information to customers is very welcome. Transparency is the friend of consumers and this move can only help homeowners and families avail of better deals.

“By itself though, it will not change the banks’ attitude. The option to empower the Central Bank to cap rates as first proposed by legislation I drafted must remain on the table. This announcement cannot be seen as a solution but rather as part of wider solution. We must now watch how this change is implemented and how the banks respond.

“It also shows how when public pressure is brought to bear the Central Bank will act. This opens up the possibility of similar moves to protect car insurance consumers who are facing unexplained demands for hugely increased premiums.

“The variable rate rip off has been at the centre of political debate since I first raised the refusal of banks to pass on ECB cuts in 2011 yet it is only now that the Central Bank have made this move. I do question why this has taken so long.” 

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