Mary Hanafin (Dún Laoghaire, Fianna Fail)

More than 3,000 new clients have presented to MABS in the first two months of the year. It is under great pressure but is responding well to the demands on its resources. I will certainly investigate the issue the Deputy has raised and am willing to discuss it in more detail with her. The sub-prime lenders are a serious concern. MABS money advisers are finding it extremely difficult to get sub-prime lenders to work with them. The main financial institutions are certainly willing to do so and are now signed up to the code of conduct in this regard. Sub-prime lenders persuaded clients to consolidate all their loans into their mortgage. For example, a person with an initial mortgage of €40,000 may have ended up with a loan of €150,000 or €180,000 following the consolidation of all types of other debts. As I said, MABS money advisers are finding it difficult to get sub-prime lenders to engage with clients in difficulty. That is one of the issues we are trying to address.

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