Dáil Éireann Debate, Tuesday - 11 February 2014
285. Deputy Lucinda Creighton asked the Minister for Social Protection if there is any mechanism whereby those using Phoenix Project Ireland could be funded either directly or indirectly to increase the number of people to whom Phoenix Project Ireland or similar bodies can provide assistance in dealing with their mortgage arrears; and if she will make a statement on the matter. [6279/14]
View answerAs part of the Government’s response to assist borrowers in mortgage distress the Mortgage Arrears Information and Advice Service was established to provide a comprehensive and coordinated approach to assist people in mortgage arrears or pre-arrears in assessing their options. The service is funded by lenders in line with the recommendation of the Keane Report.
The service, which differentiates between mortgage information and mortgage advice, has three elements:
- The Mortgage Arrears Information Helpline (phone 0761 074050) provides general mortgage arrears information and signposting in relation to the Code of Conduct on Mortgage Arrears and other supports available for those in mortgage arrears or pre-arrears. The Helpline operates Monday to Friday from 9 a.m. to 5 p.m. and has had over 9,000 callers since July 2012.
- The redesign of the website: www.keepingyourhome.ie provided for the key online access for general mortgage arrears information and advice and has had over 192,000 visitors since June 2012.
- The third element of the service is the provision of independent financial advice to mortgage holders who are being presented with long term mortgage resolution proposals by their lenders. The advice is provided by a panel of accountants drawn from members of the main accountancy institutes in Ireland. A county by county panel with over 2,000 participating accountants is in place and their details are available on www.keepingyourhome.ie. Borrowers are free to choose their own advisor from this panel and the lender will pay €250 to the accountant of the borrower’s choice for the provision of this advice.
A full review of the independent financial advice element of the Mortgage Arrears Information and Advice Service was published in December 2013. The extension of the participating panel to experts beyond accountants was examined as part of the review and the report recommended that while at present there appears to be no problem regarding supply, the extension of the panel can be considered in the context of the establishment by the Central Bank of an authorisation and regulatory framework for debt management firms under the Central Bank (Supervision and Enforcement) Act 2013. This will ensure that the service for borrowers is of a high quality, is regulated and has a redress mechanism.
A stakeholder seminar which was attended by representatives of the Phoenix Project was held in January 2014 to discuss the recommendations of the review. An implementation plan has been prepared and discussions have commenced with the relevant stakeholders to progress the recommendations including the extension of the participating panel to other experts. It is envisaged that the service will continue to be funded by the lenders.
