With only 7 days before new consumer protection rules kick in, new rule protecting vulnerable customers to have biggest impact

With only a week to go before the Central Bank’s new consumer protection rules come into force, a new ban on the auto-renewal of certain insurance policies is one of the most beneficial of the new rules kicking in, according to a new survey by Ireland's professional body for compliance professionals, the Compliance Institute.

However, it is a new rule which will allow customers in vulnerable circumstances to nominate someone they trust to communicate with a bank on their behalf which will be the most valuable of the new requirements kicking in, according to the survey, which polled approximately 150 compliance experts working primarily in Irish financial services organisations nationwide (see Table 1 in Appendix). This new rule, known as the “trusted contact person” rule, would apply to customers who might find it difficult to manage their finances or deal with their bank due to, for example, old age or frailty, a disability, or English not being their first language.

The Compliance Institute survey asked the professionals to pinpoint which of the Central Bank’s new consumer protection rules they believe will be of most value to consumers. The new rules will apply from March 24, 2026, when the Central Bank’s revised Consumer Protection Code comes into force.

According to the poll, the rules which will be of most benefit to consumers are:

1. Trusted Contact Person rule (cited by 42% of compliance professionals as the rule which will most benefit consumers)
2. Anti-Greenwashing Advertising rule, which requires firms to ensure advertising does not mislead customers about a product or service’s sustainability, the firm’s “green credentials,” or its business model (cited by 25% of compliance professionals as the most benefit rule)
3. End of Auto-Renewal for travel, gadget, dental, and pet insurance policies (cited by 22% of compliance professional)
4. Faster Return of Mortgage Title Deeds (cited by 10%) - a requirement for lenders to provide title deeds to a borrower (or their representative) within ten working days of a request.

Commenting on the findings of the survey, Michael Kavanagh, CEO of the Compliance Institute, said:

“Of all the new consumer protection rules kicking in next week, it is the one which protects consumers in vulnerable circumstances which has emerged as the rule that compliance professionals deem to be of most value. Customers in vulnerable circumstances should never be disadvantaged or experience less favourable outcomes when it comes to their finances. But the findings of our poll suggest that they may well be. Many people know a loved one in vulnerable circumstances who has run into trouble managing their finances or who has lost out financially as a result of their situation.

The ability to nominate a ‘trusted contact person’ will not just prove invaluable when customers in vulnerable circumstances find it difficult to manage their finances or communicate with their bank, it will also be hugely helpful where financial abuse or fraud is suspected. Sadly, cases of financial abuse and fraud have been on the rise in Ireland in recent years so anything which might help combat it is welcome.”

According to the Compliance Institute, the new requirement on lenders to provide title deeds to a mortgage borrower within ten working days should prove helpful to mortgage switchers.

Mr Kavanagh explained:

“The time currently taken by some lenders to release title deeds to mortgage switchers can lead to unnecessary delays so this new rule should help speed up the mortgage switching process.

The new rules around insurance auto-renewals will also stand to consumers as they will reduce the risk of consumers paying for products that they no longer need or that aren’t suitable for them.”

Most challenging rules to implement

The Central Bank’s new Consumer Protection Code covers a wide range of areas and the ultimate aim of the new rules is to protect consumers of financial products today and in the future. However, the Compliance Institute report that some of the most worthy rules being rolled out will also prove the most challenging for financial institutions to implement.

Compliance professionals cited the following new rules as the most challenging to implement:

1. Trusted Contact Person rule for vulnerable customers - 43%
2. Advertising rules to prevent greenwashing - 25%
3. Lenders providing title deeds within 10 working days - 23%

The new rules deemed by compliance professionals to be least tricky to implement were the requirement on banks to give more notice of branch closures (cited by only 2% as difficult to implement) and the end to the auto-renewal of travel insurance, gadget insurance, dental insurance or pet insurance policies (cited by 7%).

Mr Kavanagh added:

“Even if challenging to implement, it is important that financial institutions embrace and adopt the new rules. The Central Bank’s revised Consumer Protection Code is timely and much needed. A lot has changed in the world since the last Consumer Protection Code was introduced in 2012. The nature of financial services and how they are delivered to consumers has undergone huge change and the Code needs to reflect this.

Once the new rules come into place at the end of March, consumers will definitely be better protected and better able to navigate the often complex and sometimes risky financial services landscape.”