Image: Alamy Stock Photo Image: Alamy Stock Photo IRELAND MAY NEED rules to ensure that mortgage holders are not at a disadvantage if they stay with the same bank after a fixed rate expires, according to the consumer watchdog.
Its recommendations include that the Central Bank should examine the ‘loyalty costs’ of consumers being handed higher mortgage interest rates when a fixed rate expires. “Even within the same bank – so there’s no switching costs – they can move to a different product and save thousands and sometimes tens of thousands of euro.”McHugh outlined that many consumers view switching bank as a “long, expensive process” and said that they may not fully understand interest rates or the benefits of changing bank.
“They can’t price walk whereby a loyal customer who stays with the insurance company for many, many years just gets higher and higher premiums because they don’t switch or they don’t demand a lower price. We welcome that intervention,” McHugh said. The CCPC has approved the acquisition of certain assets of the departing banks by those remaining but repeatedly cautioned that a shrinking sector is not healthy for the industry.
The CCPC told the department that Ireland will have a uniquely low level of choice and compare poorly to other countries in the European Union.
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