Dáil Éireann Debate, Tuesday - 19 May 2015
131. Deputy Pearse Doherty asked the Minister for Finance the consultation he or the Central Bank of Ireland have engaged in with the Irish League of Credit Unions regarding the proposal for a multi-debt initiative to be facilitated by StepChange. [19559/15]
View answerThe Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
My role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
I understand that talks are ongoing between StepChange Debt Charity and the banks regarding the potential of operating a service to help people struggling with the burden of debt to find a solution to their problems.
I have been informed by the Central Bank that in 2013 it operated a pilot scheme to develop a process to facilitate a voluntary agreement outlining a co-ordinated approach among lenders to the resolution of multiple debts owed by distressed borrowers. The aim of the pilot framework was to achieve sustainable and fair outcomes without the need for borrowers to enter the full insolvency process. The pilot scheme focused on enhancing co-operation between lenders of secured and unsecured debt in order to resolve distressed debt at an early stage and included StepChange Debt Charity. All credit unions were invited to take part in the pilot scheme. The Irish League of Credit Unions (ILCU), the Credit Union Development Association (CUDA) and the Credit Union Managers Association (CUMA) attended meetings with the Central Bank in relation to the pilot scheme. However, while both CUDA and CUMA participated in the pilot scheme, ILCU did not participate in it.
