Take the "SAFE" test

During the COVID-19 pandemic fraudsters are finding increasingly sophisticated ways to target us.

They are using social media, fake websites and copying legitimate firms details to trick us into parting with our money and personal data. Fraudsters may offer financial products such as:

• Investments promising high returns
• Pensions and savings products with eye catching benefits
• Mortgages and loans
• Insurance policies

Remember if something that you are offered seems too good to be true then it most likely is a scam.

So, if you are considering buying that product or dealing with that firm, through a website or social media, or, receive an unsolicited phone call, email, text message or pop-up box out of the blue, take the SAFE test first.

S - Stop

Stop, think and ask yourself:

What is this firm offering? Who is contacting me? Where did they get my contact details? Who are they? Do I feel rushed to provide personal or financial information?

A - Assess

Make sure the firm is legitimate. Check the Central Bank’s register to see if the firm is authorised. Even if the firm appears to be authorised, you should still make sure it is genuine. Check for any irregularities such as misspellings and grammatical errors in the firm’s website, emails or paperwork. Call the firm using its publicly advertised phone number.

F - Factcheck

Seek advice from someone you trust to help you make good financial decisions. Be sure that the financial service or product is being provided from a trusted source and is genuine. Never provide personal information or agree to send money until you are satisfied that the firm is authorised and genuine.

E - Expose and report

If you have any concerns that a firm is not genuine or is not authorised to sell financial products, please contact the Central Bank. We have the powers to investigate and take action against these fraudsters. We are here to support and protect you. You can make your report to us directly on our website or by phoning us on (01) 224 4000.

Contact your lender as early as possible to discuss your options.

If you can't afford to repay your mortgage or loan due to COVID-19 you should contact your lender as early as possible and discuss what options are available to you. We have engaged with banks and other lenders on the introduction of "payment breaks" for up to six months on mortgages and other loans for customers experiencing financial difficulties as a result of COVID-19. A payment break is where you agree with your lender to postpone or reduce your loan repayments for an agreed period of time.

Our consumer protection framework is designed to protect your interests, particularly in times where you may experience financial difficulties because of illness or loss of income. All regulated lenders should engage with you sympathetically and positively, with the objective at all times of assisting you. We are monitoring this process to ensure our expectations are being met.

And remember, if you are in financial difficulty or potential difficulty, our existing consumer protections are there to protect you.

See also:

• Money Advice and Budgeting Service (MABS)

No payments, or reduced payments, on a loan for an agreed period of time.

A payment break (also known as a "moratorium") is where you agree with your lender to postpone or reduce your loan repayments for an agreed period of time. Payments on mortgages (for private dwellings and buy-to-lets), personal loans and business loans may be deferred for up to six months for customers facing financial difficulties due to COVID-19. Lenders will keep this under review depending on the scale and extent of the situation.

A payment break can give you breathing space in these difficult times when you are experiencing financial difficulties due to the impact of the COVID-19 crisis.

When you agree a payment break with your lender, it is essential that they explain how the break will affect your loan (including on the overall cost and revised monthly repayments). For example, your lender may spread your repayments over the remaining term of the mortgage/loan, to allow you to repay it within the original term. This means that you will have to pay higher repayments (spread out) over the remaining term of the loan. Alternatively, your lender may offer you the option to extend the term of the loan by the length of the payment break. This spreads your repayments over a longer period. Both options mean your loan will cost you more overall. Your lender should let you know what the additional costs are likely to be.

You can apply for a payment break by contacting your lender.

If you are experiencing financial difficulties due to COVID-19 and you want to apply for a payment break on your loan, you should contact your lender.

We have communicated with individual lenders to make sure that they have a simple application process for payment breaks. This may vary across lenders, for example, some may offer online, email or telephone applications.

All lenders are dealing with a considerable increase in queries and applications at this time, so you should view your lender’s website for the latest updates and information applicable to you.

No, you should not stop making your repayments without an agreed payment break.

It is important that you do not stop making your mortgage or other loan payments unless you have agreed a payment break with your lender.

If you stop making repayments but have not agreed a payment break, then your lender will be obliged to report the missed payments to the Central Credit Register, and this information will appear on your credit report.

Talk to your lender for more information.

You should speak to your lender to make sure you clearly understand what a payment break means for you and what will happen when it ends. Lenders should clearly explain to you:

• If the term of the loan will be extended
• If the payment break means you monthly repayments will go up once the break expires

If you are still experiencing financial difficulties after the agreed payment break comes to an end, you should speak to your lender to discuss what other options are available to support you further.

Yes, it may be, so talk to your insurance provider.

Taking a payment break on your mortgage may impact your cover under your mortgage protection insurance policy. You should contact your policy provider to discuss the impact, if any, of a payment break on your mortgage protection policy cover and payments.

It is important to be aware that even with a payment break on your mortgage, you may still have to make your mortgage protection payments.

Talk to your lender about what is most appropriate for you.

Payment breaks should be generally be available to customers experiencing financial difficulties due to COVID-19, including those borrowers currently meeting the terms of alternative repayment arrangements.

If you are in arrears, you will need to discuss this with your lender. Your lender will consider whether a payment break is appropriate for you as well as any measures that are already in place to help you through your payment difficulties.

During this current period of uncertainty, we expect lenders to pause repossession action on all residential properties. You will need to discuss what this means for you with your lender.

Contact your credit card provider to discuss your options.

If you are having difficulties making credit card repayments or believe you may do in the future as a result of COVID-19 you should contact your credit card provider as early as possible to discuss your options. We expect providers to actively support you.

You will have to check with your lender.

The Central Credit Register produces credit reports for lenders and borrowers. Importantly, It does not produce a credit score or a credit rating; it simply records the information that is submitted by lenders. It is factual, impartial information. The onus is on the lender at all times to ensure that the information reported to the Central Credit Register correctly reflects arrangements agreed with you.

Every month lenders submit personal and credit information on loans over €500 to the Central Credit Register. The Central Credit Register matches this information to create credit reports for lenders and borrowers.

When a lender agrees a payment break with a borrower, the lender should not report this to the Central Credit Register as payments being "missed" or "past due" or the loan as being "restructured", during the period of the payment break.

Example

If a lender agrees with a borrower to a payment break with no payments at all for a period of three months, starting in April. The lender will not report this as "missed payments" or a "restructure" event to the Central Credit Register for April, May and June.

If payments were being made, the amount recorded as the "Outstanding Balance" would normally decrease during those months. However as no payments are being made during the payment break period, the "Outstanding Balance" recorded will not decrease. The "Outstanding Balance" information is contained in the credit report.

There is a lot of information available on the Central Credit Register’s website including:

• A list of all lenders who submit information to the Central Credit Register
• A sample credit report and more information on your rights
• A comprehensive FAQ

You can, if you wish, place an explanatory statement on your credit report to explain your current circumstances where your loans are concerned.

It is important to note, only the Central Credit Register is within the remit of the Central Bank of Ireland; private credit bureaux are not. In order to determine if your credit rating will be affected, you may wish to check with your lender to see if they submit information on loans to any private credit bureaux, which may produce credit ratings or credit scores.

See also

• What is the Central Credit Register?

Contact your provider, firms must engage positively.

If you are concerned about the impact that the COVID-19 crisis may have on your insurance policies, you should contact your insurance provider (insurance firm or broker) to discuss. If you are uncertain whether your health or travel insurance policies offer particular cover, your insurance provider can advise on the specifics of your policy.

If you are concerned about renewing your policy, or are unable to pay your regular premiums, you should contact your provider in good time to discuss your situation.

Insurance firms must have processes in place to engage positively with you if you are experiencing difficulties in the payment of premiums because of COVID-19.

We expect firms to communicate in a clear, transparent manner to you about the levels of cover provided by individual insurance policies. Firms should prominently display on their websites the key relevant information about COVID-19 and contact details should you have any queries.

If firms are making changes to terms and conditions to insurance policies going forward, they need to make consumers and intermediaries aware of the changes made and the potential impact the changes could have on future claims.

Firms should prominently display on their websites the key relevant information about COVID-19 and contact details should you have any queries.

Firms must offer a fair settlement arrangement if you are entitled to one under your policy.

Insurance firms are required to take account of the challenging situation in which many of their customers find themselves and to put forward consumer–focused solutions for insurance payment breaks, policy rebates and claims in light of the emergency. This is in line with the Central Bank’s expectations of both life and general insurance firms (including travel insurance). Firms must proactively communicate in a clear, transparent manner to customers about the levels of cover provided by individual insurance policies.

In relation to insurance claims, firms must ensure that any settlement offer made to you is fair, takes into account all relevant factors and represents the firm’s best estimate of your reasonable entitlement under the policy. Firms must ensure that they handle claims effectively and properly.

Although we expect that most policy wordings are clear in terms of what cover is provided and what is excluded, where there is a doubt about the meaning of a term, the interpretation most favourable to you should prevail. Firms must ensure that claims are appropriately assessed and where there is insurance cover in place that claims are accepted and paid promptly.

We expect all firms to offer to assist you in the process of making a claim including, where relevant, alerting you to policy terms and conditions that may be of benefit to you.

Firms must ensure that claims are appropriately assessed and where there is insurance cover in place, claims are accepted and paid.

Yes—if your health insurance policy includes private hospital cover.

As part of the state’s response to the COVID-19 crisis, the Department of Health, Health Service Executive and the Private Hospital Association reached an agreement for private hospitals to come under public control for a period of at least three months, starting from 30 March.

This means that private hospital cover, which is a significant benefit of most private health insurance products, will not be available to private health insurance customers for the duration of this agreement.

The Central Bank of Ireland wrote to the Chairs and CEOs of regulated insurance firms on 27 March requiring them to put forward consumer-focused solutions for insurance payment breaks, policy rebates and claims in light of the COVID-19 public health emergency.

Following this, Vhi Healthcare, LAYA Healthcare and Irish Life Health have announced that they are to return value to their customers affected by the private hospital agreement.

Your insurer should inform you of how your refund will be handled.

You should contact your insurer for details of any premium refunds, waivers or other ways of returning value to you. Your insurer should also inform you of how this will be handled. Your insurer can also advise you on the range of benefits and services they continue to provide through this period.

The Central Bank wrote to the Chairs and CEOs of regulated insurance firms on 27 March requiring them to put forward consumer-focused solutions for insurance payment breaks, policy rebates and claims in light of the COVID-19 public health emergency.

Following this, a number of motor insurers announced that they are offering their customers refunds or discounts to reflect an expected lower level of claims due to the travel restrictions imposed during the COVID-19 emergency.

You should contact your insurer or insurance broker for details of any premium refunds or discounts you may be due. Your insurer should also inform you of how this will be handled.

Alternative arrangements should be put in place.

We are working constructively with all the sectors we regulate, recognising the challenges they face to maintain continuity of business and provision of service to customers in light of the global public health emergency caused by COVID-19.

Our core focus is on ensuring that the financial system can continue to provide services to households and businesses at this difficult time. We also expect regulated firms to have appropriate contingency plans in place to be able to deal with major operational events should they occur.

The retail banks and credit unions have business continuity plans, including contingency plans, in place on how to assist consumers if there are branch or office closures due to business disruption.

We expect banks and credit unions to have alternative arrangements in place so that they can continue to provide services to you, including information on how to access banking and credit union services if some branches have to close. We will continue to work with banks and credit unions to ensure that where they have to take the decision to close offices or certain branches, that consumers who do not have online facilities will be able to avail of an alternative means to access their account. We expect firms to communicate with you to let you know how you can access their services. The Central Bank issued a circular to credit unions on 31 March highlighting the importance of timely communication to members on access to key financial services.

Alternative arrangements should be put in place.

We expect regulated firms to have appropriate contingency plans in place to be able to deal with major operational events, should they occur, and we are engaged with firms across the financial system to ensure that firms are responding effectively to the evolving situation.

We expect credit unions and banks to have alternative arrangements in place so that they can continue to provide services to you, including information on how to access banking services if some branches have to close. We will continue to work with credit unions and banks to ensure that where they have to take the decision to close certain offices or branches, consumers who do not have online facilities will be able to avail of an alternative means to access their account. We expect firms to communicate with you to let you know how you can access their services.

Contact your provider, appropriate contingency plans should be put in place.

Regulated payment institutions and e-money institutions are required to protect user’s funds in accordance with the applicable legislation. This requirement is designed to protect these funds in the event of the failure or insolvency of the firm.

We expect regulated firms to have appropriate contingency plans in place to be able to deal with major operational events, should they occur, and we are working with the financial sector to ensure that firms are responding effectively to the evolving situation. If issues arise you should contact your service provider in the first instance.

The Deposit Guarantee Scheme protects depositors in the event of a bank or credit union authorised by the Central Bank of Ireland being unable to repay deposits. It remains operational throughout the COVID-19 crisis and is contactable via its website.

See also

• Deposit Guarantee Scheme

If you are unhappy with the service received from a firm which is regulated by the Central Bank, you are entitled to make a complaint with the firm concerned.

The firm must handle the complaint in accordance with the relevant complaints handling provisions of the Central Bank’s Consumer Protection Code. The Consumer Protection Code requires firms to handle complaints speedily, efficiently and fairly.

For more information read our advice on how to make a complaint about a financial services provider.

If you are not happy with the response you receive from the firm, you are entitled to escalate your complaint to the Financial Services and Pensions Ombudsman (FSPO), who has the statutory powers to investigate complaints against financial services providers.

Please be aware that the FSPO will only consider a case once the internal complaints procedure within the firm concerned has been followed.

See also

• How do I complain about a financial services firm?