Dáil Éireann díospóireacht -
Wednesday, 3 Oct 2001

Vol. 541 No. 2

Written Answers. - Local Authority Loans.

Michael Ring

Ceist:

691 Mr. Ring asked the Minister for the Environment and Local Government when he will instruct local authorities concerning repayments due to individuals as a result of loan overpayments made by them; and if he will make a statement on the matter. [21421/01]

Minister of State at the Department of the Environment and Local Government (Mr. Robert Molloy):

In August 1998, following a complaint to the Ombudsman regarding overpayments on a number of local authority housing loans, my Department requested local authorities to: identify any cases of over-payments on mature housing loans; take appropriate action to ensure that any overpayments on paid up mature loans are refunded; where appropriate, alert borrowers to contact their paying bank with instructions to terminate their Standing Orders and adopt appropriate procedures to ensure that over-payments of paid up loans do not occur in the future.

My Department also consulted with the Local Government Computer Services Board whose housing loans system is used by most local authorities. As a result, the board have assisted local authorities in preventing any recurence of the problem. The board issued a new reporting program which highlights when a transaction occurs on a paid up account and, in addition, the board held a number of training courses on the housing loans system throughout the country to advise local authority staff of procedures designed to prevent overpayments. Those local authorities who do not use the board's system were also requested by the Department to ensure that their system incorporates a facility to clearly identify paid up loans.

In February 1999, the Office of the Ombudsman informed my Department that the Ombudsman had decided to investigate the matter in all local authorities. A report of the Ombudsman's findings was published in July 2000 and copies are available in the Oireachtas Library.

My Department is not aware of any cases where the over-payments identified in the Ombudsman's report were not refunded.