Ms Carol Dunne:

The Deputy has raised a number of issues. The first is that somebody in that situation can go to any of the six organisations represented at the committee today. That causes a difficulty because there is an expectation on the part of the borrower that one or other of them will deliver the perfect solution. In reality, there is an issue that perhaps echoes the point raised by Ms Blackwell. Borrowers are very much on the back foot in terms of the CCMA and the MARP. Everything is reactive. They are given an offer and are told that is it. Sections 39 and 40 of the code provide for a lender to explore a range of his options - not any specified options but the options he is willing to provide - and set it out. However, all he is obliged to communicate to the debtor is the one he has chosen. There is no alternative. There is a requirement for anybody in mortgage arrears to access money advice, financial advice and legal advice on the particular circumstances with which they are faced and in an ideal scenario construct an offer to bring to their lender, rather than to be on the receiving end of that offer.

The Deputy mentioned the mortgage arrears information helpline as part of the mortgage arrears information service. The helpline has handled 11,000 calls since its establishment. Of those calls, approximately one half was made after the people had already received a final offer from their lender and two thirds of those were sale or repossession. That was the only offer on the table. Interestingly, that service had been envisaged as being targeted at people who were in pre-arrears rather than arrears. People must deal with it very quickly. Our preference in MABS is that we would hear from people very early in the problem, before their lender is even aware that there is a difficulty. The earlier it can be addressed, the more options that are open to them.