A review conducted by the Central Bank has revealed that over 400,000 of Ireland's approximately 1.3 million credit card accounts are subject to Annual Percentage Rates (APRs) exceeding 23%.
Legislation introduced in 2022 prohibits new credit card accounts from having APRs higher than 23%. The APR represents the total annual cost of borrowing, including both interest and fees.
The Central Bank noted that many credit card holders might not be aware of the possibility of obtaining lower rates from alternative products or providers.
The review highlighted additional concerns, such as poor handling of customer complaints, inadequate marketing practices, and limited support for customers facing financial difficulties.
To address these findings, the Central Bank stated it is directly engaging with financial institutions to ensure corrective measures are implemented. This includes making customers with higher interest accounts aware of their available options.