John Cregan (Limerick West, Fianna Fail)

I, too, congratulate Deputy Flanagan on bringing forward this Bill which deals with an issue we all have to deal with in our constituencies from time to time. There is tremendous merit in the House discussing this issue at this point in time.

As other speakers have said, many people have been significantly affected by the difficult economic situation in which we find ourselves. People are experiencing great difficulties and the situation may worsen rather than improve in the coming months. The adverse situation, which occurred very quickly, could not have been anticipated by people who undertook financial commitments in good faith. To their credit, most people who enter into contractual arrangements, take out mortgages or avail of services intend to repay the debt in due course. Unfortunately, in the current economic climate many people are unable to meet those commitments. In this regard, the use of heavy handed tactics and intimidation is wrong. As I stated, many people find themselves in a situation not of their own making and are at their wits end to make ends meet. Often, at the end of the week or month they do not have the financial resources to meet the commitments which they set out from day one to meet.

It would be remiss of me not to mention that there are people who neglect their responsibility to meet commitments despite their having the financial resources to do so. We should not forget that there are people who choose to walk away from their commitments. Businesses that provide services and goods are entitled to have debts repaid to them as they, in turn, must pay debts. It is important people respect this and accept the obligation on them to meet their personal commitments.

Much of the public concern in regard to the operation of debt collection relates to mortgage debt. There are arrangements in place to deal with this issue. The recapitalisation of the banks, an issue about which we have heard so much and on which we have spoken at length, includes a code of conduct for mortgage arrears, which has been issued by the Financial Regulator and came into force on 27 February 2009. The new code applies to the recovery of debt in respect of mortgage lending activities to consumers in respect of their principal private residence in the State. It is mandatory for all mortgage lenders registered with the Financial Regulator, including so-called sub-prime lenders. Under the code, where a borrower is in difficulty, the lender shall make every reasonable effort to agree an alternative repayment schedule and, consideration should be given on a case-by-case basis to alternatives such as deferral of payments, extension of the term of the mortgage, change of mortgage or capitalising arrears and interest. Also, lenders may not commence legal action for repossession until after six months from the time arrears first arise. I welcome the code which I hope will provide people with an opportunity to repay their debts in an easy manner.

As mentioned by other speakers there are laws on the Statute Book dealing with this issue. The Non-Fatal Offences Against the Person Act 1997 deals with assault, intimidation and demanding money with menace. This legislation is in place for the benefit of those who need it. I reiterate that any person who feels threatened or harassed by another person or group of persons in the context of debt recovery should contact the Garda Síochána. It is unlawful for any creditor to seek to recover moneys owed in such a fashion. There are well defined procedures, judicial and non-judicial, for the recovery of debt. I believe there exists already ample law in respect of this issue. However, such matters must be brought to the attention of the Garda Síochána and should include evidence in support of the claim.

While I welcome the opportunity to speak on this issue, provided by Deputy Flanagan's introduction of this Bill, I do not believe the legislation is practical or that it would serve any great purpose. I encourage people to use the laws already in place to deal with this issue.

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