Dáil Éireann Debate, Wednesday - 3 June 2020
59. Deputy Steven Matthews asked the Minister for Finance if his attention has been drawn to issues that some customers are facing with non-bank mortgage providers in which the provider has refused requests for a mortgage break necessitated by the Covid-19 crisis due to the customer being in arrears previously regardless of the level of arrears. [8567/20]
Amharc ar fhreagraI have been informed by the Central Bank of Ireland (the Central Bank) that for all regulated entities, including banks, retail credit and credit servicing firms, the Central Bank is focused on ensuring that COVID-19 related payment breaks operate in borrowers’ best interests and are in line with regulatory requirements.
Payment breaks give customers the opportunity to postpone or reduce their repayments on their mortgage, personal or business loans, providing breathing space for borrowers from the severe income shock many households and businesses are experiencing.
The Central Bank have stated that payment breaks should be a generally available option to affected borrowers, including those borrowers already in financial distress, forbearance and/ or in an Alternative Repayment Arrangement (ARA). Those borrowers in arrears but not in a performing restructure should be considered on a case by case basis, and be granted a payment break if that is an appropriate short-term support for their circumstances. Regulated firms should ensure approaches are consistent with existing arrears strategies and operations.
The Central Bank of Ireland (the Central Bank) expects all banks, retail credit and credit servicing firms to take a consumer-focused approach and to act in their customers’ best interests.
