Oireachtas Joint and Select Committees

Tuesday, 29 May 2018

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Resolution of Non-Performing Loans: Discussion (Resumed)

4:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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I understand now, thank you.

Mr. Varley has explained that the key provision on the accelerated out-of-court enforcement of loans secured by collateral does not apply to consumer loans. That is like an agreement upfront that if the loan goes wrong, this is how we will deal with it, the customer loses security and so on. I assume the borrowers do not lose any rights, that they still have the right to go to court if they want to. Do these proposals involve addressing the issue of any residual debt? If it is agreed that the collateral is forfeited by the borrower and the bank takes control of that but there is still a residual debt, is that issue dealt with as part of the detail of this directive?