Ms Derville Rowland:

As the Deputy will be aware, we are carrying out a review on the effectiveness of the CCMA, particularly in the context of loans that have been sold. We have done on-site inspections in the credit servicing firms and we are reviewing their general compliance with the provisions of the CCMA. We have met a number of stakeholders in the process to get their insights into what is working well, where the blockages are and the changes or improvements that need to be made. An important part of the work we are doing is analytical. We are gathering data on the loans that have been sold, the alternative arrangements and what is happening to them, the range of options the banks have in place and what options are being agreed with customers. We are comparing this data with the same scenario in the non-banks, which gets to the issue being discussed of which way might this go. We are analysing this data and it will be reported on. Some of the data will assist us in having an evidenced-based discussion around the outcomes that we may see occurring. There is a backdrop to this that we will have to factor into our thinking. Some of the loans and people affected by them - those in deeper arrears - may be in the non-bank scenarios such that the range of options that they offer could be influenced by the circumstances of the individuals they are dealing with. This work will give us some insights into precisely this point. We have done a very deep exercise in gathering that data in order to assist us.

It is true that the protections of the CCMA have helped many families. The approaches of the Central Bank helped restructure their loans. It is important that the broad message goes out to people that where they are in difficulties it is important that they engage with their lenders. Their lender is obliged to treat them sensitively with a view to seeking to resolve the arrears constructively, where possible. This is an outcome that is possible through the use of the CCMA. It is important that people engage with the process if they find themselves in this awful circumstance.