Séamus Healy (Tipperary South, Workers and Unemployed Action Group)

I welcome the Bill and also the indication from the Government that it will take into consideration the items raised in it when amending the Central Bank (Supervision and Enforcement) Bill currently before the Oireachtas. That is a welcome development.

The debt management industry has flourished in the years since the recession took hold. However, it is completely unregulated. Because it is such a sensitive issue, significant regulation by the Central Bank is required to ensure those who are forced to use these services know that they are above board and that they will not find themselves in an even worse position after using them. A significant number of individuals and organisations providing debt management services were previously in the business of organising mortgages and, in many cases, used dubious methods to ensure mortgage applications were successful, which often resulted in difficulties for borrowers. Now, in providing debt management services, they are getting a second bite of the cherry. This is an industry that needs regulation and it is reasonable to suggest the regulating authority should be the Central Bank and that these debt agencies and advisers should be licensed or authorised.

Another aspect that results in difficulties for those who avail of these services is that there is no indication at the beginning of the fees to be charged for the services provided. Often, people find themselves in further financial difficulties after using debt management advisers. Sometimes advisers ask clients who are not au fait with the procedures to pay by direct debit, with the first number of payments going directly to them as fees. This issue needs to be dealt with.

A related issue, one that is important, is mortgage interest supplement. This scheme needs to be re-examined and the 30 hour work rule should be abolished. It would also be helpful if legal actions were precluded while mortgage interest supplement was being paid and if mortgage payments were interest-only during that period.

I thank other agencies involved in this general area, including the Money Advice and Budgeting Service, MABS, and the credit unions, as well as the Society of St. Vincent de Paul. The Minister should examine the position of the MABS which is under severe pressure and has neither the resources nor the staff to deal with its current workload. I am aware of this from numerous calls to my constituency office, as are other Members of the House. I ask the Minister to consider this issue.

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