Department of Finance review recommends no change to Section 149 of Consumer Credit Act 1995.
SMEs relieved by sensible decision at last.
ISME, the Irish Small & Medium Enterprise Association, welcomed today's announcement (14th February) that a review by the Department of Finance recommended that it would not be appropriate to repeal Section 149 of the Consumer Credit Act 1995 (as amended) at this time. Section 149 requires financial institutions to seek approval for any increases in fees and charges and for the introduction of new charges. The Association had voiced concern that repealing this section would lead to crippling bank increases for SMEs and is pleased with the outcome of the review.
According to ISME CEO, Mark Fielding, “Section 149 is an important protection for SMEs against the bailed out Irish banks tendency to increase charges to buttress their profits on the backs of vulnerable SMEs. The Act requires approval from the Central Bank Financial Services Regulator for increased prices but even this has not stopped bank charges from spiralling out of control in recent years. “
“The rescued banks are scurrying around looking to see where they can increase income and Government must continue to intervene to stop this profiteering before it leads to more business closures and job losses.”