Charlie McConalogue (Donegal North East, Fianna Fail)
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139. To ask the Minister for Finance his views that a well regulated debt management advice sector can provide assistance to persons with personal debt difficulties who do not qualify for the reliefs set out in the Personal Insolvency Act; and if he will make a statement on the matter. [21262/13]

Michael Noonan (Limerick City, Fine Gael)
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The amendment to the Central Bank (Supervision and Enforcement) Bill 2011, which I proposed at Committee Stage, and was agreed on the 24th April 2013, will provide for a regulatory regime for debt management and debt advice companies. On the issue more generally people in debt or in danger of getting into debt can avail of the services of the Money Advice and Budgeting Service (MABS). This is a national, free, confidential and independent service. MABS have offices throughout the State. It is strongly suggested that anyone with debt or budgeting difficulties should approach their local MABS Office with a view to securing a confidential consultation with a money advisor to consider their particular circumstances.

The Deputy should be aware that the Government has introduced a range of additional information and guidance resources to assist mortgage holders through what can be a difficult and stressful process. A dedicated website, www.keepingyourhome.ie , has been put in place to provide general public information on mortgages arrears issues. In addition, there is a Mortgage Arrears Information Helpline, which is established under the aegis of the Citizens Information Board, to provide more tailored information to individual callers. Finally, a panel of accountants has been put in place to provide “one to one” independent advice to borrowers who have been provided with a long term forbearance resolution offer by their lender in respect of a mortgage on their primary home. All of these information services are provided at no direct charge to the users of the service.

Charlie McConalogue (Donegal North East, Fianna Fail)
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140. To ask the Minister for Finance if he will ensure that his plans to regulate the debt management advice sector prohibits misleading advertising, ensures reasonable charges and appropriate protection for client funds; and if he will make a statement on the matter. [21263/13]

Michael Noonan (Limerick City, Fine Gael)
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The amendment to the Central Bank (Supervision and Enforcement) Bill 2011, which I proposed at Committee Stage, and was agreed on the 24th April 2013, will provide for a regulatory regime for debt management and debt advice companies. Under the proposed legislation the Central Bank will require that debt management firms will be obliged to comply with an appropriate code of conduct. The existing protections of the Consumer Protection Code will apply to debt management firms and it is via this code that protections for consumers with regard to advertising and charges etc. will be provided for.

Debt management firms will be authorised to provide debt advice and debt negotiation services as provided for in the definition of debt management services in the Central Bank (Supervision and Enforcement) Bill 2011. They will not be authorised to hold client funds on the basis of solely holding a debt management firm authorisation. Where debt management firms propose to receive client funds and make payments on behalf of clients to their creditors they may require a payment institution authorisation under the European Communities (Payment Services) Regulations 2009 or a money transmission business authorisation under Part V of the Central Bank Act 1997 (as amended) depending on their business model. It is under these regimes that the appropriate protection for client funds is provided for.