Dáil Éireann Debate, Thursday - 14 January 2021
70. Deputy Bernard J. Durkan asked the Minister for Finance if he remains satisfied that lending institutions remain sympathetic to difficulties faced by borrowers with particular reference to their ability to meet repayments in the current climate; and if he will make a statement on the matter. [2160/21]
View answerI appreciate the stress and uncertainty that many borrowers are facing, and that they will continue to need assistance and support from their lenders. It is the clear expectation of both the Central Bank and I that lenders engage effectively and sympathetically with distressed borrowers – in line with the Code of Conduct on Mortgage Arrears, the Consumer Protection Code and regulations for lenders lending to SMEs – to deliver appropriate and sustainable solutions and facilitate as many borrowers as possible to return to repaying their debt.
The Banking and Payments Federation of Ireland (BPFI) stated last week that its members are continuing to commit significant resources to support customers impacted by COVID-19, and in particular those who are affected by the latest restrictions. Through ongoing engagement with the BPFI and lenders, the Central Bank is working to ensure that borrowers affected by COVID-19 continue to be supported through this period of unprecedented stress.
The Central Bank recently wrote to all lenders indicating that lenders are to ensure that they have sufficient expert resources to assess individual borrower circumstances, and to offer appropriate and sustainable solutions to affected borrowers in a timely manner in line with regulatory requirements and Central Bank expectations.The Central Bank has also confirmed that there is no regulatory impediment to lenders offering payment breaks to borrowers at this time, providing they are appropriate for the individual borrower circumstance. With regard to primary dwelling mortgages, the Deputy may wish to note that it is open to lenders to put temporary arrangements in place to assist a borrower who are experiencing repayment difficulties pending the more detailed consideration and assessment of an individual mortgage case under the CCMA Mortgage Arrears Resolution Process.
Borrowers who are not satisfied with how a financial institution is dealing with their situation can make a complaint to the financial institution (or an appeal if you are not satisfied with a decision it makes under the CCMA process) and if they are still not satisfied with their response, they can contact the Financial Services and Pensions Ombudsman (FSPO). The FSPO can be contacted on 01 567 7000 or at info@fspo.ie and their website is attached: https://www.fspo.ie/.
I will continue to work with the Central Bank, as regulator, to ensure that the Central Bank consumer protection and other applicable frameworks will be fully available to all borrowers that will still need support.
