Financial institutions can no longer increase credit card limits unless requested to do so by the consumer.
The practice of cold calling has also been significantly restricted, following the implementation of the final elements of the long-awaited Consumer Protection Code yesterday.
According to the Irish Financial Services Regulatory Authority, the code will create a level playing field by ensuring the same level of protection for consumers regardless of the type of financial services provider they choose.
The code has been in development since 2004 and replaces various codes, legislation and handbooks that previously applied and which had been developed on an ad hoc basis.
A number of provisions of the code came into force last August, including a ban on unsolicited pre-approved loans and the requirement for warnings to be included in certain advertisements for financial products and services. Financial institutions were prohibited from forcing customers to take out payment protection with them when signing up for a mortgage.
The final elements of the code came into force yesterday. They contain a number of new provisions in addition to those relating to credit card limits and cold calling. Financial institutions must be able to prove that any product recommended to a customer is the most suitable product for that person.
New rules relating to the handling of customer complaints have also been introduced, setting time limits within which complaints should be investigated and resolved.
Important information can no longer be hidden in illegible "small print" in advertisements. The term "free" cannot be used to advertise banking services if certain catches apply, for example if the customer is required to maintain a minimum balance in their account.
Companies in breach of any provisions of the code may face sanctions of up to €5 million.