Banks, building societies and other financial institutions found treating customers unfairly could be named and shamed by the new Financial Services Ombudsman announced today.
Data Protection Commissioner Joe Meade has been appointed to the new post with effect from next month and has the power to fine a range financial service providers up to €250,000.
And he declared today: "The greatest sanction is to name offending institutions."
Financial Services Ombudsman Joe Meade
He will front the Financial Services Bureau set up increase consumer protection in the wake of recent high-profile banking scandals. Credit unions, brokers, stockbrokers, bureau de change outlets, pawnbrokers, money lenders and hire purchase firms are also within the bureau's remit.
It has the statutory power to investigate and adjudicated upon unresolved complaints from customers of regulated institutions and while his decisions will be binding they will be subject to High Court appeal.
Regular reports will be published and offending parties will be identified where necessary. "It is my intention to be as open and communicative as possible," Mr Meade said following his appointment today.
"Anybody who feels they don't get satisfaction from any financial institution or other parties under my responsibility can report the case to my office and I will take it from there," he added.
The Financial Services Bureau has also merged the offices of the Ombudsman for Credit Institutions headed by Gerry Murphy and Insurance Ombudsman of Ireland headed by Caroline Gill. They will become deputy financial services ombudsmen under the new arrangements.
Minister for Finance Brian Cowen welcomed the announcement saying it was "an important further step in ensuring that the consumer of financial services gets a fair deal".
The Bureau will be advised by a nine-member council which is chaired by Dr Con Power. Dr Power said: "This Bureau means business and means business now. There will be no prevarication."
Fine Gael's finance spokesman Richard Bruton said the new bureau was needed because "customer welfare has not been a priority for many financial institutions in recent years".