Dáil Éireann Debate, Wednesday - 5 December 2018
158. Deputy Michael McGrath asked the Minister for Finance if there is reference in the consumer protection code or the code of conduct on mortgage arrears that deals with the calculation of mortgage arrears and the methodologies used; and if he will make a statement on the matter. [51071/18]
View answerI have been informed by the Central Bank of Ireland that the Consumer Protection Code 2012 (the Code) and the Code of Conduct on Mortgage Arrears 2013 (the CCMA) do not prescribe a methodology for the calculation of mortgage arrears. However, both the Code and the CCMA set out the information which must be provided to consumers in arrears.
The CCMA sets out how mortgage lenders must treat borrowers in or facing mortgage arrears, and applies to the mortgage loan of a borrower which is secured by his/her primary residence. The CCMA defines “arrears” as “where a borrower has not made a full mortgage repayment, or only makes a partial mortgage repayment, in accordance with the original mortgage contract, by the scheduled due date.” Lenders are restricted from imposing charges and/or surcharge interest on arrears arising on a mortgage account unless the borrower is not co-operating.
The Consumer Protection Code (‘the Code’) defines mortgage arrears as arising where a personal consumer “has not made a full repayment, or only makes a partial repayment, as set out in the original loan account contract, by the scheduled due date”. Chapter 8 of the Code provides for arrears handling requirements which apply to mortgage loans to which the CCMA does not apply because they are not secured on the primary residence.
