Dara Murphy (Cork North Central, Fine Gael)
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Question 94: To ask the Minister for Finance his views on instructions issued by a bank to a person (details supplied) to move from a tracker mortgage to interest only; his further views that this is best practice from a State owned bank; and if he will make a statement on the matter. [17147/11]

Michael Noonan (Limerick City, Fine Gael)
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As Minister for Finance I will not comment on the particular circumstances of the case referred to by the Deputy. These are matters in the first instance for the bank itself, the Central Bank of Ireland in its role as regulator and, should the customer wish to make a complaint the Financial Services Ombudsman. The Consumer Protection Code requires regulated entities to act honestly, fairly and professionally in the best interests of their customers. Such entities must not recklessly, negligently or deliberately mislead a customer as to the real or perceived advantages or disadvantages of any product or service. In accordance with common rule 12 of the Consumer Protection Code "a regulated entity must ensure that all information it provides to a consumer is clear and comprehensible, and that key items are brought to the attention of the consumer. The method of presentation must not disguise, diminish or obscure important information ."

In the case of a customer experiencing financial difficulties in meeting his/her mortgage commitments or one who is concerned that he/she is in danger of going into financial difficulties, mortgage lenders must comply with the requirements of the revised Code of Conduct on Mortgage Arrears (CCMA) which came into effect on 1 January 2011. A lender must have a Mortgage Arrears Resolution Process in place incorporating communication with borrowers, financial information, assessment, resolution and appeals. In exploring all options for alternative repayment arrangements lenders must consider, inter alia, deferred payment, term extension, interest and partial capital payments and interest only arrangements. The CCMA states that lenders "must not require the borrower to change from an existing tracker mortgage to another mortgage type, as part of any alternative arrangement offered to the borrower".