Glossary
Plain-English definitions of the financial and legal terms you will encounter when dealing with banks, insurers, and regulators in Ireland. Use the search box or letter links to find what you need.
A
AML— Anti-Money Laundering
Anti-Money Laundering refers to the laws and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. Irish banks and financial institutions are required to carry out AML checks, which is why they may ask you for proof of the source of funds when making large transactions or opening accounts. If your account is frozen or restricted, AML compliance is often cited as the reason.
Arrears
Arrears means you have fallen behind on payments that were due. For example, if you miss two mortgage repayments, you are said to be "in arrears" by two months. Being in arrears can trigger additional charges, affect your credit record on the Central Credit Register, and may lead your lender to begin a collections or legal process. You have rights under the Code of Conduct on Mortgage Arrears (CCMA) if your mortgage falls into arrears.
B
Binding decision
A binding decision is a ruling that both parties must legally comply with. When the FSPO issues a legally binding decision after investigating your complaint, the financial provider is obliged to follow it. This can include orders to pay compensation, rectify errors, or change practices. The provider cannot simply ignore a binding decision — it is enforceable through the courts.
C
CBI— Central Bank of Ireland
The Central Bank of Ireland is the main regulatory authority for financial services in Ireland. It licenses and supervises banks, insurers, and other financial firms. The CBI sets the rules that providers must follow, including the Consumer Protection Code. While the CBI does not handle individual complaints (that is the FSPO's role), it can take enforcement action against firms that breach regulations.
CCPC— Competition and Consumer Protection Commission
The CCPC is Ireland's statutory body responsible for enforcing consumer protection and competition law. It handles complaints about misleading advertising, unfair commercial practices, and product safety. If a financial provider has engaged in misleading or aggressive selling practices, you can report them to the CCPC. The CCPC also provides free consumer information and guidance.
CCR— Central Credit Register
The Central Credit Register is Ireland's national database of credit information, operated by the Central Bank. Every loan, credit card, or credit agreement of €500 or more is recorded here. You have the right to request your free credit report and challenge any inaccurate entries. Incorrect CCR data can affect your ability to get a mortgage, loan, or credit card.
Consumer Credit Act 1995
This is the primary Irish legislation governing hire purchase agreements, consumer credit, and lending practices. It gives consumers important protections including cooling-off periods, the right to early repayment, and the right to voluntarily terminate a hire purchase agreement once you have paid half the total price. If you have a car on HP finance, this Act is central to your rights.
Cooling-off period
A cooling-off period is a legally mandated window of time during which you can cancel a contract or agreement without penalty. In Ireland, you typically have 14 days to cancel a distance or online financial product (under the European Communities (Distance Marketing of Consumer Financial Services) Regulations 2004). For HP agreements signed away from a dealer's premises, a 10-day cooling-off period applies under the Consumer Credit Act 1995.
CPC— Consumer Protection Code
The Consumer Protection Code is a set of rules issued by the Central Bank that all regulated financial providers in Ireland must follow. It covers how providers must treat you — from how they sell products, to how they handle complaints, to how they communicate. Under the CPC, providers must act honestly and fairly, give you clear information, and resolve complaints within strict timeframes. Breaches of the CPC can be grounds for a complaint to the FSPO.
Credit Reporting Act 2013
This Act established the Central Credit Register (CCR) and set out the rules for how credit information is collected, stored, and shared in Ireland. It gives you the right to access your credit report for free and to request amendments if the data is inaccurate. Lenders are legally required to submit credit data to the CCR and to check it before approving new lending.
D
Default
A default occurs when you fail to meet the terms of a credit agreement — usually by missing multiple payments. A default is recorded on your credit report and is one of the most serious negative marks you can receive. It can stay on your record for five years and makes it significantly harder to obtain new credit. If you believe a default was recorded unfairly or in error, you can challenge it through the CCR amendment process.
DPC— Data Protection Commission
The Data Protection Commission is Ireland's independent authority responsible for upholding the right to data privacy. If a financial institution mishandles your personal data, fails to respond to a Subject Access Request, or breaches GDPR, you can file a complaint with the DPC. Ireland's DPC is particularly significant as it also oversees many large tech companies with European headquarters in Ireland.
Duty of care
Duty of care is the legal obligation that financial providers have to act in your best interests and to avoid causing you foreseeable harm. In practice, this means providers should not sell you unsuitable products, should warn you of risks, and should handle your account responsibly. A breach of duty of care can form the basis of a complaint to the FSPO or even a civil court action.
E
Escalation
Escalation refers to the process of taking your complaint to a higher authority when the financial provider has not resolved it to your satisfaction. In Ireland, the typical escalation path is: internal complaint to the provider, then to the FSPO (for financial complaints), the DPC (for data issues), or the CCPC (for consumer protection matters). You generally need a Final Response Letter or to have waited 40 business days before you can escalate to the FSPO.
F
Forbearance
Forbearance is an arrangement where your lender agrees to temporarily reduce or suspend your loan repayments because you are experiencing financial difficulty. Common forbearance options include interest-only payments, reduced payments, or a payment moratorium. Under the Code of Conduct on Mortgage Arrears, your lender is required to explore forbearance options with you before taking legal action on a mortgage.
FRL— Final Response Letter
A Final Response Letter is the formal written response a financial provider gives you after completing their investigation of your complaint. It must outline the outcome, any redress offered, and inform you of your right to escalate to the FSPO if unsatisfied. Receiving an FRL (or the provider failing to issue one within 40 business days) is what unlocks your right to take the complaint to the FSPO.
FSPO— Financial Services and Pensions Ombudsman
The FSPO is Ireland's independent statutory body that resolves complaints between consumers and financial service providers. It can investigate disputes about banking, insurance, investments, and pensions. The FSPO has the power to make legally binding decisions and can order compensation of up to €500,000. The service is free to use and its decisions are published, creating a powerful accountability mechanism.
G
GDPR— General Data Protection Regulation
GDPR is the EU-wide data protection law that gives you strong rights over your personal data. Under GDPR, you have the right to access your data (via a Subject Access Request), correct inaccurate data, object to processing, and in some cases have your data deleted. Financial institutions must respond to a SAR within one month. GDPR is enforced in Ireland by the Data Protection Commission.
H
HP— Hire Purchase
Hire purchase is a type of credit agreement commonly used to finance cars in Ireland. Under HP, you hire the goods and make regular payments; you do not own them until the final payment is made. The Consumer Credit Act 1995 gives you important rights including the ability to voluntarily terminate the agreement once you have paid half the total HP price. This is known as the "half rule" and is a powerful consumer protection.
I
ICB— Irish Credit Bureau
The Irish Credit Bureau was a private credit reference agency that maintained credit histories of borrowers in Ireland. It has largely been superseded by the Central Credit Register (CCR) for new lending decisions, but some older credit data may still exist in ICB records. Some lenders may still reference ICB data alongside CCR data when assessing your creditworthiness.
K
KYC— Know Your Customer
Know Your Customer is the process financial institutions use to verify your identity and assess your risk profile. KYC requirements mean you will be asked for photo ID, proof of address, and sometimes proof of the source of your funds when opening accounts or making significant transactions. While KYC can feel intrusive, it is a legal requirement under anti-money laundering legislation. If you feel KYC checks are being applied disproportionately or in a discriminatory manner, you may have grounds for a complaint.
M
Mediation
Mediation is a voluntary process where an independent third party helps you and the financial provider reach a mutually acceptable resolution. The FSPO offers mediation as part of its dispute resolution process. Mediation is often faster than a full investigation and can produce outcomes that both parties agree to. If mediation fails, you can still proceed to a full FSPO investigation.
Mis-selling
Mis-selling occurs when a financial product is sold to you in a way that is misleading, does not meet your needs, or where the risks were not properly explained. The tracker mortgage scandal in Ireland is one of the largest examples of mis-selling, where banks moved customers off low-rate tracker mortgages in breach of their contracts. If you were mis-sold a product, you can complain to the provider and escalate to the FSPO.
O
Ombudsman
An ombudsman is an independent official appointed to investigate complaints against organisations. In Ireland, the Financial Services and Pensions Ombudsman (FSPO) handles complaints about financial providers. The ombudsman service is free, impartial, and has the legal power to make binding decisions. Using the ombudsman is an alternative to going to court and is generally faster and less costly.
P
PCP— Personal Contract Plan
A Personal Contract Plan is a type of car finance where you pay a deposit, make monthly payments for a set term (usually 3 years), and then face a final "balloon" payment to own the car, or return it. PCPs are not hire purchase — they are regulated differently. You do not have the same voluntary termination rights as with HP. Understanding the distinction between PCP and HP is critical before financing a vehicle.
PSD2— Payment Services Directive 2
PSD2 is an EU directive that regulates payment services and providers across Europe. It introduced Strong Customer Authentication (SCA), which is why you now need two-factor authentication for online banking and card payments. PSD2 also gives you rights regarding unauthorised transactions — your bank must generally refund unauthorised payments immediately unless they can prove fraud or gross negligence on your part.
R
Regulatory body
A regulatory body is an organisation established by law to oversee and regulate a particular industry. In Irish financial services, the main regulatory bodies are the Central Bank of Ireland (which licenses and supervises providers), the CCPC (which enforces consumer protection law), and the DPC (which enforces data protection law). The FSPO is an adjudicatory body rather than a regulator — it resolves individual disputes rather than setting rules.
Right of rectification
Under GDPR Article 16, you have the right to have inaccurate personal data corrected without undue delay. This is particularly relevant for credit report errors — if your CCR record contains incorrect information (wrong balance, missed payment recorded in error, wrong account status), you can demand rectification from the lender. If they refuse, you can escalate to the DPC or the Central Bank.
S
SAR— Subject Access Request
A Subject Access Request is a formal request under GDPR Article 15 for a copy of all personal data an organisation holds about you. Financial institutions must respond within one calendar month. SARs are a powerful tool in disputes because they force the provider to disclose internal notes, call recordings, decision logs, and communications about your account. This evidence can be invaluable when building a complaint.
Secured vs unsecured debt
Secured debt is borrowing that is backed by an asset (collateral), such as a mortgage secured against your home or a HP agreement secured against a car. If you default, the lender can repossess the asset. Unsecured debt (credit cards, personal loans, overdrafts) is not backed by a specific asset, so recovery options for the lender are more limited. The distinction matters because your rights and the lender's powers differ significantly between the two.
Statute-barred debt
A statute-barred debt is one where the creditor has run out of time to take legal action to recover it. In Ireland, the limitation period for most debts is six years from the date of the last payment or written acknowledgement of the debt. Once a debt is statute-barred, a creditor cannot sue you for it in court. However, the debt still technically exists and can still appear on your credit record. Debt collectors may still contact you, but they cannot threaten legal action on a statute-barred debt.
Suitability assessment
A suitability assessment is the process a financial provider must carry out to ensure that a product or service is appropriate for your specific needs, circumstances, and risk appetite. Under the Consumer Protection Code, providers must gather information about your finances and objectives before recommending products. If you were sold a product without a proper suitability assessment, this is a strong basis for a mis-selling complaint.
U
Unfair terms
Unfair terms are clauses in consumer contracts that create a significant imbalance between your rights and the provider's rights, to your detriment. Under EU and Irish law (European Communities (Unfair Terms in Consumer Contracts) Regulations 1995), unfair terms are not legally binding on the consumer. Examples include terms that allow the provider to change charges without notice or that limit your right to take legal action. If you believe a term in your contract is unfair, you can challenge it.
V
Voluntary termination
Voluntary termination is your legal right under the Consumer Credit Act 1995 to end a hire purchase agreement once you have paid at least half of the total HP price. You can return the goods (typically a car) and walk away with no further liability, provided the goods are in reasonable condition. This is one of the most powerful and underused consumer rights in Ireland. It applies only to HP agreements, not to PCP or personal loans.