Foreword
Consumers today are making greater use of financial institutions and financial services than in the past. They are faced with an increasing choice of products and a corresponding range of costs. These developments underline the importance of enhanced transparency in the dealings between the financial institutions and consumers. We therefore welcome the publication of this Code which should ensure that interest, fees and charges are more transparent for consumers as personal customers of financial institutions. This knowledge is key to facilitating consumers in making more informed choices as to how they will avail of financial services. The Code complements existing statutory and voluntary measures. In some cases, the Code will essentially make explicit practices which, to some degree at least, are already followed by the industry. There are however, important new safeguards in the Code - most notably those set out at paragraphs 4.4, 4.5, 4.6 and 4.7. We would hope that these concrete commitments should help foster consumer confidence in the application of standards of good practice and service by financial institutions.

1. Commitment to the Code
The members of the Irish Bankers' Federation (IBF), the Irish Mortgage and Savings Association (IMSA) and the Irish Finance Houses Association (IFHA) have voluntarily agreed to adhere to this Code. Credit institutions will ensure that their customers and staff are informed about it and its undertakings. The Code is supported by the Minister for Labour, Trade and Consumer Affairs and by the Director of Consumer Affairs. The Code complements existing legal obligations and voluntary codes, e.g. the IBF Code of Practice for Personal Customers, the IBF/IMSA Code of Practice on the euro, the IBF/IMSA Code of Practice on Mortgage Arrears and the IFHA Code of Practice. Any changes to the Code will be agreed between the Director of Consumer Affairs, IBF, IMSA and IFHA.

2. Purpose of the Code
The purpose of this Code is to ensure that credit institutions' interest, fees and charges are more transparent for personal customers. Credit institutions may still waive or reduce charges in individual cases and introduce additional improvements in practices on transparency.

3. Application of the Code
This Code will apply to consumer credit and other agreements covered by the Consumer Credit Act, 1995 (e.g. housing loans, term loans, overdrafts, credit cards, consumer hire and hire purchase agreements). All institutions undertake to fully apply all the terms of the Code by 2nd October 2000 at the latest. Institutions will make every effort to implement the terms of the Code (or specific parts of it) from an earlier date. Those institutions that have not applied all the terms of the Code by 10th March 2000 will furnish the Director of Consumer Affairs with a schedule of implementation at that time. Credit institutions may apply the relevant undertakings in this Code as appropriate to credit agreements already in existence at the time they implement the Code (or the relevant part of the Code). The Code only applies if the credit institution provides the product or service to which reference is made.

4. Undertakings
Credit institutions voluntarily agree to the following good practices:

4.1 Information for customers
Notices will be displayed at branches and outlets advising customers how to access information on charges for standard products and services. This information will include, in the case of current accounts, how such charges may be reduced. Information on charges for non-standard services will be given as a matter of course when these services are requested.

4.2 Pre-notification of charges on current accounts
Where fees and charges are accumulated and applied periodically to current accounts, the customer will be advised at least 10 working days before deduction, in cases where these fees and charges total more than �10 ( � 12.70). A breakdown of the amount being deducted will also be given. A breakdown of amounts less than �10 ( � 12.70) will be available on request.

4.3 Information on overdrafts
Credit agreements and relevant overdraft brochures will include the following information: (a) the circumstances where additional charges (e.g. referral fees) or surcharge interest will apply; (b) a warning about the rate of surcharge applied if the terms and conditions of the Credit Agreement (e.g. exceeding agreed limits) are not honoured; (c) how surcharge interest accrues and is charged to the account (daily/monthly/quarterly) and the balance on which it is calculated (i.e. the full overdrawn balance or the unauthorised portion thereof).

4.4 Pre-notification of interest on overdrafts
Where the interest to be charged exceeds �10 ( � 12.70), credit institutions will inform customers, at least 10 working days beforehand, of the ordinary interest amount for the relevant charging period. Any surcharge interest being applied will be shown separately. Information for amounts less than �10 ( � 12.70) will be available on request.

4.5 Pre-notification for overdrafts subject to annual review
Where a credit institution intends to apply a surcharge on the outstanding balance of an overdraft due to the expiry of an annual limit, it will advise the customer at least 10 working days in advance.

4.6 Standard Procedure for early or partial settlement under credit agreements
Customers will be given on request:
(a) Information about the early redemption fee charged in the case of an early settlement of a loan, consumer hire or hire purchase agreement or in the case of partial settlement of a loan. This information will be provided in writing where specifically requested. To avoid misunderstanding, it will be clearly stated that the quote is only valid on the date it is given.
(b) Information on how an additional repayment, made as a partial settlement of a loan, will impact on the account for interest calculation purposes (e.g., immediately, at year-end, etc.).

4.7 Standard procedure for non-system driven increases
Where interest or charges that are calculated automatically by credit institutions are manually increased, the following rules will apply: (a) at least two members of staff will observe and verify that the increase to the computer generated interest or charge has been correctly handled; (b) customers will be written to in relation to any such increases in interest or charges not previously advised or agreed within 5 working days.

4.8 Internal complaint procedures
Credit institutions will provide internal procedures, at branch or service outlet level, for responding to complaints in relation to interest and charges in a satisfactory and expeditious way.

4.9 Case of established overcharging
Where a case of overcharging is established, credit institutions will repay the overcharged amount in current value terms. Depending on the individual case, an ex-gratia payment to cover any reasonable out of pocket expenses may be made.

5. Compliance with the Code
IBF, IMSA and IFHA agree to promote full adherence to this Code by their members and the availability of appropriate and prompt redress within the institutions concerned for customers in the event of non-compliance. As an integral part of their commitment to this Code, the IBF, IMSA and IFHA will review its operation annually with the Director of Consumer Affairs. The Ombudsman for the Credit Institutions will have regard to the undertakings in this Code when considering complaints from customers. The Ombudsman's Annual Report will include a section dealing with cases relating to this Code.