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Mortgage Schemes

Dáil Éireann Debate, Tuesday - 15 September 2020

Tuesday, 15 September 2020

Questions (285)

Seán Canney

Question:

285. Deputy Seán Canney asked the Minister for Finance if persons who entered into a mortgage break with a bank will have their credit rating negatively affected by this decision; and if he will make a statement on the matter. [23888/20]

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Written answers

The Central Bank of Ireland, which owns and manages the Central Credit Register, has indicated that there is no operational issue which prevents lenders putting in place Covid-19 payment breaks to assist their customers. Indeed, it has made it clear to all lenders (including banks, local authorities and other credit information providers) that either a full or partial payment break agreed between a lender and a borrower as a response to Covid-19 is not, in itself, an event that is reportable to the Central Credit Register. Furthermore, the Bank has also clarified that a payment break agreed between a lender and a borrower as a response to Covid-19 should not be reported to the Central Credit Register as either a “missed payment” or as a “restructure event”.

It should also be noted that the Central Credit Register does not produce credit scores; rather the information on a credit report provided by the Central Credit Register is factual in nature (and in turn it is based on information provided to the Central Credit Register by lenders). It contains no guidance, recommendation or prohibition for lenders on what decision they should make on an application for credit. Subject to complying with applicable law and regulatory requirements, it is a matter for lenders to make their own lending decisions in accordance with their own credit policies and risk appetites.

The Deputy may wish to note that borrowers may access their credit report free of charge (subject to fair usage) at www.centralcreditregister.ie.

Separately, borrowers may also wish to check with their lenders to see if they submit information on loans to any private credit bureaux which may produce credit ratings or credit scores. However, it should be noted that, unlike the Central Credit Register, private credit bureaux do not fall within the remit of the Central Bank.

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