Jack Chambers (Dublin West, Fianna Fail) | Oireachtas source

An amendment has been made regarding the FSPO, as the Deputy is aware, in the context of what he has set out. The Government previously sought to correct this. I have set out the robust framework in place to protect people dealing with issues such as mortgage arrears. The CCMA forms part of the Central Bank’s consumer protection framework and is a central part of its overall mortgage arrears framework. I am talking about the present in the context of the FSPO’s powers. The CCMA must be complied with under the law. The Central Bank has the power to take enforcement action against any regulated entity that is not acting in compliance with it. The Central Bank continues to supervise compliance and will investigate any issues that arise, including patterns of behaviour that suggest the CCMA process is not being followed.

The objective of the CCMA, which is a statutory code, is to ensure regulated entities have fair and transparent processes in place for dealing with borrowers in or facing mortgage arrears. Due regard must be given to the fact that each case is unique and needs to be considered on its own merits, and each regulated entity must consider the borrowers’ situations in the context of the solutions it provides, which solutions may differ from firm to firm. The CCMA does not prescribe the solution that must be offered. It includes the requirement that alternative repayment arrangements must be appropriate and sustainable and based on a full assessment of the individual circumstances of the borrower. The CCMA requires the lender to exhaust all options available from the suite of alternative repayment arrangements offered by it before taking any action that may result in borrowers losing their homes. The CCMA requires regulated entities to have an appeals process in place to enable a borrower to appeal a decision by a regulated entity, including where the borrower is not willing to enter an alternative repayment arrangement or where the regulated entity declines to offer an alternative repayment arrangement. The appeals procedure must also inform borrowers of their right to refer the matter to the Financial Services and Pensions Ombudsman.

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