MBNA Europe Bank Limited

The Central Bank has previously highlighted its concerns relating to control failures that result in customers being overcharged. However, the Central Bank continues to discover, or be made aware of, instances whereby firms have inadequate systems and controls in place to ensure that customers are not disadvantaged. As highlighted in the Central Bank’s Enforcement Strategy for 2011-2012, dealing with issues relating to the overcharging of customers has been identified as a priority area for the Central Bank and accordingly, the Central Bank will continue to focus its Enforcement resources to help achieve acceptable standards across all industry sectors. Therefore, industry can expect that the Central Bank will continue to take robust enforcement action against regulated entities who continue to fall short of the required standards and their customers’ legitimate expectations, in this area. The Terms of Business is an important document in which the firm is required to clearly set out the basis upon which it will conduct its business with customers who place reliance upon the terms. Firms should review their Terms of Business document on a regular basis to ensure that it accurately reflects the terms upon which services are provided to customers at that time and should ensure that they have in place adequate internal control systems to ensure that these reviews take place. Firms should monitor and test these internal control systems on a regular basis to ensure that they are effective so as to minimise the potential for errors and ensure that errors if they do occur are readily and promptly identified and remediated.