Dáil Éireann Debate, Thursday - 23 November 2023
114. Deputy Brendan Griffin asked the Minister for Finance if he is aware of elderly people being pursued by financial companies for historic debts; if he is aware of the extreme distress being caused to people in such circumstances; and if he will make a statement on the matter. [51581/23]
View answerThe Deputy will be aware that resolving any debt issues requires engagement between the borrower and lender. Only through such engagement can solutions be found.
There are a range of supports available for anyone, regardless of their age or circumstance, who is experiencing difficulties dealing with debt. The Money Advice and Budgeting Service (MABS) offers free impartial advice on dealing with debt.
The Deputy will also be aware that a person in difficulty could contact the Insolvency Service of Ireland (ISI), which is an independent body set up to help tackle personal debt problems. The ISI has put in place a regulated network of financial advisors known as personal Insolvency Practitioners (PIPs), to provide people with debt advice and to work with creditors on their behalf to work out a solution for those in difficulty.
The ISI has a range of debt solutions to help get people back on track financially, including a Personal Insolvency Arrangement, a Debt Relief Notice, a Debt Settlement Arrangement or Bankruptcy. Following a consultation, a PIP will advise which solution best suits a person’s individual situation.
I would also highlight to the Deputy that there is a robust consumer protection framework in place to protect people who are dealing with arrears on mortgages. The same protections are provided for borrowers under the consumer protection framework regardless of the regulated financial services provider with whom they are dealing, be that a bank, retail credit firm (RCF) or credit servicing firm (CSF).
Regulated entities are authorised and supervised by the Central Bank of Ireland and are subject to the full suite of relevant regulatory requirements and financial services legislation, including the Code of Conduct on Mortgage Arrears (CCMA).
There is a broad range of measures in place to protect mortgage holders who are experiencing difficulty with their repayments. The CCMA outlines how a lender must act if a borrower is in, or facing, mortgage arrears. The CCMA sets out the process that entities must follow when a borrower is experiencing difficulties with their mortgage payments. Due regard must be given to the fact that each case is unique and needs to be considered on its own merits.
Regulated entities must explore all of the options for alternative repayment arrangements (ARAs) in order to determine which ARA, if any, is appropriate and sustainable for a distressed borrower’s individual circumstances. The range of sustainable solutions being offered to consumers has expanded significantly including the use of new ARAs, mortgage-to-rent and personal insolvency arrangements.
The CCMA must be complied with under the law and the Central Bank has the power to take enforcement action against any regulated entity who does not act in compliance with the CCMA. The Central Bank continues to supervise compliance with the CCMA and will investigate any issues that arise, including patterns of behaviour that suggest that the CCMA process is not being followed.
This CCMA has been designed to protect consumers and regulated lenders are legally obliged to comply with it. The Code requires lenders to:
• Provide dedicated and specially trained staff in their Arrears Support Unit to manage cases. This includes having any meetings with consumers in private and referring them to their online or hardcopy information.
• Follow the Mortgage Arrears Resolution Process (MARP), which sets out how lenders must communicate with consumers; assess their situation with the aim of coming to a resolution. It includes having an appeals process in place so consumers can appeal certain decisions of their lender. Appeals can ultimately be referred to the Financial Services and Pensions Ombudsman (FSPO).
Finally, if the Deputy has evidence that firms are pursuing borrowers contrary to the provisions of the CCMA, the Central Bank of Ireland will consider any such information as part of their supervisory duties.
