Regulatory Alerts2016-07-21
Addendum to Consumer Protection Code 2012 July 2016
The Central Bank of Ireland amends the Consumer Protection Code 2012 to enhance transparency and consumer choice for variable rate mortgage holders by mandating regulated entities to publish, update, and distribute plain-English summary statements detailing the factors, criteria, and governance processes used to set variable interest rates. The addendum further requires post-sale disclosures that notify borrowers of rate changes with specific reasons, highlight alternative mortgage products that could reduce costs, and direct consumers to resources for switching lenders. Additionally, the document aligns the code with the EU Mortgage Credit Directive and the Central Bank’s SME Lending Regulations by explicitly exempting overlapping provisions to prevent regulatory duplication.