New Consumer Rights Directive: What Changes in 2026

The European Union’s revised Consumer Rights Directive, set to be fully transposed into Irish law by mid-2026, introduces a raft of new protections for consumers dealing with financial services firms. The directive strengthens rules around transparency, complaint handling, and the right to switch providers, building on the existing Consumer Protection Code enforced by the Central Bank of Ireland.

One of the most significant changes is the requirement for financial service providers to issue “pre-renewal notices” for insurance and subscription products at least 40 days before renewal. These notices must clearly state the previous year’s premium, the proposed renewal premium, and a comparison showing any increase. Providers must also include a prominent statement reminding consumers of their right to shop around. This directly targets the practice of “price walking,” where loyal customers are quietly charged more than new customers for the same cover.

The directive also tightens rules around complaint handling timelines. Under the new framework, firms must acknowledge complaints within three business days (down from five) and issue a final response within 30 business days (down from 40). Where a firm fails to meet these deadlines, the consumer will be entitled to automatic compensation of €100 per week of delay, up to a maximum of €1,000. This creates a real financial incentive for firms to take complaints seriously and respond promptly.

For Irish consumers, these changes represent a meaningful step forward. The directive also introduces stronger protections for vulnerable customers, requires firms to offer at least one free method of communication (ending the practice of premium-rate complaint lines), and mandates that switching between providers must be completed within 15 business days. Consumers should familiarise themselves with these new rights so they can hold their providers to account from day one.