Safeguarding Ireland has welcomed today’s taking effect of the Central Bank of Ireland’s new Consumer Protection Code.
For the first time, the Code includes formal recognition of ‘financial abuse’ and sets out standards to protect at-risk customers.
The Code requires all regulated firms to have measures in place to counter the risk of financial abuse by someone who is known and trusted by the customer.
Welcoming today’s commencement, Safeguarding Ireland Chairperson Patricia Rickard-Clarke said: “The Central Bank’s new regulations on financial abuse are a vital protection for customers of regulated firms. We urge people to be aware of the risk of financial abuse not just by online fraudsters, but by someone they know and may trust.”
Today’s commencement replaces the previous Consumer Protection Code 2012 – and also includes new measures for the digital age, on mortgage switching, to combat fraud and greenwashing.
While online fraud and scams by strangers are a growing phenomenon, research shows that the majority of financial abuse is committed by someone known to the person. A RED C poll commissioned by Safeguarding Ireland showed that ‘Almost a third of adults in Ireland have experience of Financial Abuse (30%) – with the vast majority (81%) of this abuse carried out by someone well-known to the victim’.
Financial abuse can involve a family member, carer, neighbour, worker, or social welfare Agent doing the following:
- Keeping change, or taking cash that is around the house
- Misusing a bank card, or online banking
- Being dishonest about social welfare payments
- Using property or possessions without agreement or permission
- Threatening withdrawal of care unless a person complies with money or property demands
- Pressurising to change a Will, property deeds, or Enduring Power of Attorney.
In many cases, financial abuse is linked to the coercive control or coercive exploitation of the victim. Some adults are deliberately targeted as they are perceived as vulnerable and may need to rely on someone else to manage their money, benefits, or assets.
Safeguarding Ireland’s advice to prevent and reduce financial abuse is to:
- Avoid sharing a bank card and pin number, account number, or access to online banking
- If help is needed – first ask for advice from the bank, An Post or Credit Union
- If help is needed with day-to-day spending – choose carefully a trusted person and limit their access
- Ask for receipts
- Get monthly account statements
- Make an Enduring Power of Attorney.
Resources on the Code are available at:
https://www.centralbank.ie/consumer-hub/consumer-protection-code
The Code’s measures on financial abuse can be viewed at:
Further Information
Ronan Cavanagh, Cavanagh Communications: (086) 317 9731
See https://www.safeguardingireland.org
Safeguarding Ireland promotes safeguarding of adults to protect them from all forms of abuse by persons, organisations and institutions and to deliver a national plan for promoting their welfare. Safeguarding means putting measures in place to uphold our rights, to support our health and wellbeing, to reduce our risk of harm – and to empower us to protect ourselves.
