Dáil Éireann Debate, Thursday - 15 March 2012
8 Deputy Simon Harris asked the Minister for Finance his plans to introduce measures to assist persons who acted in good faith in becoming guarantors for mortgages at the height of the boom and now find themselves being pursued by the financial institutions in question; and if he will make a statement on the matter. [14767/12]
View answer9 Deputy Simon Harris asked the Minister for Finance if he will outline any rights mortgage guarantors might have in their dealings with financial institutions; and if he will make a statement on the matter. [14768/12]
View answerI propose to take Questions Nos. 8 and 9 together.
There are measures in place to assist guarantors of mortgages. I have no plans to introduce additional measures.
The Central Bank has in place a Consumer Protection Code. The Code contains a number of provisions that are relevant to the guarantors of loans to private consumers. For example, provision 4.26 of the Code states that where credit is being offered to a personal consumer, subject to a guarantee, the guarantee documentation must outline the obligations of the guarantor and must contain the following warning statement:
"Warning: As a guarantor of this credit, you will have to pay off the debt amount, the interest and all associated charges up to the level of your guarantee if the borrower(s) do(es) not. Before you sign this guarantee you should get independent legal advice".
Provision 6.8 requires that "where a regulated entity has advanced credit to a personal consumer subject to a guarantee, the regulated entity must notify the guarantor on paper or on another durable medium, if the terms of the credit agreement change". Provision 8.6 requires that "where an account remains in arrears 31 calendar days after the arrears first arose, a regulated entity must, within three business days, inform the personal consumer and any guarantor of the loan, on paper or on another durable medium, of the status of the account". Provision 8.6 goes on to list information that has to be provided to the personal consumer and guarantor under this provision. A copy of the central Bank's Consumer Protection Code is available on the Central Bank's website www.centralbank.ie.
