Billy Timmins
Question:175 Deputy Billy Timmins asked the Minister for Finance the position regarding a matter (details supplied); and if he will make a statement on the matter. [6126/09]
View answerTuesday, 17 February 2009
Questions (142)
Written answers
The Financial Regulator published its Code of Conduct on Mortgage Arrears on 13th February in keeping with the Government's announcement on recapitalisation arrangements. This code applies only to mortgage lending activities to consumers in respect of their principal residence in the State, by all regulated entities operating in the State. Under the Code, where a borrower is in difficulty, the lender will make every reasonable effort to agree an alternative repayment schedule and will not commence legal action for repossession until at least six months from when the arrears first arise.
The two recapitalised banks, AIB and Bank of Ireland, have each committed that they will not commence court proceedings for repossession of a principal private residence until after 12 months of arrears appearing, where the customer continues to cooperate reasonably and honestly with the bank. The recapitalised banks have, in addition, assured the Government that in the normal course of events they will make every effort to avoid repossessions, as has been evidenced by the low level of repossessions by them to date.