New Protections For Bank Customers

Bank customers are to be given increased statutory protection, following public and media pressure for change.

Most of the changes took effect on 3 May 2009, while others will come into force on 3 August 2009.

The key change is the imposition of limits on banks' right to make unilateral changes to interest, fees and costs in finance agreements.

In retail loan agreements and financial lease agreements with individual consumers or small businesses (ie with fewer than 10 employees and a maximum annual turnover or balance sheet of €2 million):

• the right to make unilateral changes to interest, fees and costs to the detriment of customers can only be exercised if they fall within the scope of provisions dealing with price changes