Joan Burton (Dublin West, Labour) | Oireachtas source

This is important in the context of the comments that were made earlier about financial education and levels of public financial knowledge. This is an issue that the banks could address collectively. People in their late 20s who cannot currently afford a mortgage may think that it is okay to take out a car loan but in fact the consequences of that may be that their debt level relative to their income is higher than it should be. In terms of financial education, people should perhaps opt for a second-hand car and a smaller loan if they are planning to apply for a mortgage at some point in the near future.

I am interested in the refusal rate because my impression is that it is much higher than 10%. I am not talking specifically about the Bank of Ireland but banks in general. Bank of Ireland has been involved in the development of the Irish Banking Culture Board. In terms of people who are interested in getting a loan from Bank of Ireland or from the Rebuilding Ireland loan scheme, much more customer information needs to be provided. People should be given a pathway. The bank may well have data which show that arranging a loan when one is on a fairly tight income takes between a year and 18 months and that people must plan for it, above and beyond getting a deposit together. In terms of consumer education, I do not believe that people understand this clearly.