I assume that the Deputy is referring to the engagement by firms, including the one he mentioned in the details supplied, with customers in relation to ceasing the practice of Automatic Arrears Capitalisation. Automatic Arrears Capitalisation refers to a methodology used by some lenders to recalculate borrowers' contracted monthly instalment (“CMI”) on their mortgage, following a trigger event (such as an interest rate change). The Central Bank is of the view that the practice of Automatic Arrears Capitalisation is not in the best interest of consumers and where the practice was identified, it intervened to ensure the practice ceased.
The Central Bank has also advised me that a briefing note on the same topic was requested by Deputy John McGuinness on 18 May and a response issued by the Central Bank on 22 June. A copy of the response can be found at: https://www.centralbank.ie/docs/default-source/publications/correspondence/oireachtas-correspondence/20180622-response-to-finance-committee-re-calculation-of-mortgage-arrears.pdf?sfvrsn=4
However, if the Deputy is referring to a different issue, I am advised by the Central Bank that it cannot comment on its supervisory activity relating to individual regulated firms due to confidentiality requirements. However, if there is specific information that the Deputy wishes to bring to the direct attention of the Central Bank, the Bank has advised that it will consider it in the context of its supervisory activity.