Jimmy Deenihan (Kerry North, Fine Gael)
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Question 53: To ask the Tánaiste and Minister for Finance if he has assessed the impact of the international credit crunch on Irish financial institutions and on credit conditions; and if he will make a statement on the matter. [29668/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I refer the Deputy to the reply I gave earlier on this question.

Joan Burton (Dublin West, Labour)
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The Labour Party has asked a similar question on the credit crunch, but because it was dealt with under priority questions, we did not get the opportunity to ask a supplementary question.

Brendan Howlin (Wexford, Labour)
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The Deputy may ask a supplementary question now.

Joan Burton (Dublin West, Labour)
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The Minister is aware there are severe penalties for people who fall behind on repayments to sub-prime lenders. The courts are currently witnessing hundreds of cases per month of sub-prime lenders moving against people who raised mortgages through them. Does the Minister intend to introduce any regulations for the schedule of penalties and charges sub-prime lenders impose on lenders when they fall behind? Many people are now beginning to have their homes repossessed and the penalty charges made by sub-prime lenders over a short period are extremely severe.

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Deputy is aware that this area of the market accounts for just 2% of the Irish mortgage market, compared to about 15% in the United States. She is also aware that as regards lending in the market and taking steps to improve the situation for borrowers, people lending in the area uphold basic standards. Section 19 of the Markets in Financial Instruments and Miscellaneous Provisions Act 2007, which was recently enacted, amended Part V of the Central Bank Act 1997 to provide for a system of authorisation and regulation of retail credit firms and home reversion providers. The primary purpose of the amendment was to extend to customers of these firms the benefits and protections provided for in the Financial Regulator's consumer protection code. This provides a line of redress to those treated wrongly by any of these providers.