Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

Question 32: To ask the Minister for Social Protection the action he is taking to assist persons who are over indebted and need help and advice in coping with debt problems; and if he will make a statement on the matter. [43940/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

The Citizens Information Board, which comes under the aegis of this Department, is responsible for the Money Advice and Budgeting Service, which assists people who are over-indebted and need help and advice in coping with debt problems. The role of money advisers is to help clients to assess their financial situation, make a budget plan and deal with creditors.

There are 51 MABS companies providing money advice to clients operating from 65 locations around the country, as well as National Traveller MABS, which operates on a national basis. In addition, MABS National Development Limited is funded by the Citizens Information Board to provide a national support and development service to local MABS companies. The MABS national telephone helpline is available from 9 a.m. to 8 p.m., Monday to Friday, and the MABS website can be accessed 24 hours a day at www.mabs.ie. Some 90% of clients presenting to MABS are assisted through the telephone helpline which provides assisted self-help to ensure clients take steps to assess and address their situations. Last year, an additional 19 money advisers were recruited by MABS, bringing the number of MABS staff to 277. The additional advisers have been appointed to MABS companies throughout the country.

The money adviser works out a budget and negotiates on behalf of the client with all creditors, including financial institutions and sub-prime lenders, to secure better terms for the client in managing the repayment of their debts. Where required by the client, the money adviser can assist with setting up a special account with a local credit union into which the client lodges an agreed amount of money regularly and from which each month the money adviser makes the repayments to the creditors on behalf of the client. It is important that people coping with debt difficulties take early action and approach MABS for help and guidance, which can be the first positive step for people in addressing debt difficulties.

The Department was represented on the expert group on mortgage arrears and personal debt, established by the Department of Finance and chaired by Mr. Hugh Cooney, which published its final report on 17 November 2010, with recommendations on measures to assist in dealing with the difficulties created by mortgage arrears.

Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

According to the Financial Regulator, over 40,000 mortgages were in arrears for over 90 days at the end of September, an increase from 26,000 last year. Independent forecasts estimate 300,000 people will be in negative equity this year and over 500 homes have been repossessed in 2010. Some of the recommendations of the report published last week by the expert group on mortgage arrears are in place but others will require legislation. Will many of these recommendations be put in place by the end of the year and which ones does the Government plan to put in place immediately?

There is a time-bomb waiting to explode in regard to mortgage arrears and we need to do something about it. There have been two reports but what we need is action. When will we have it?

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

I had been working on this issue prior to the publication of the final report. Immediately it was published, I asked officials to draw up a list of the issues that can be dealt with by circular letter, those that need regulations and those that need legislation. I understand I will have that list this week. I have asked the officials as a matter of priority to come up with a response, particularly in regard to the mortgage interest scheme, which comes under the direct responsibility of my Department. I agree with the Deputy that we need to move on this issue very quickly.

Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

Will the Minister ensure the revised code of conduct on mortgage arrears is implemented immediately? Which banks have signed up to the deferred interest scheme? This is the most important issue. It is now that people need help. The Minister referred to MABS. The major problem people have is that, given the waiting lists, they cannot get appointments with MABS and must wait weeks, which creates another problem. The Minister is correct that MABS is doing an excellent job through its interventions but more people are needed on the ground. Staff should be transferred into MABS from other Departments. Something must be done to deal with the waiting lists.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

Within MABS, priority is given to those with very urgent cases. Each company operates separately but I am more than aware of the need for people in extreme circumstances to receive urgent attention.

The latest survey on waiting times shows that the average waiting time is approximately 4.9 weeks, with waiting times ranging from one week or less to some 18 weeks. Urgent cases are prioritised and dealt with as quickly as possible. The average waiting list has 42 people.

This is why we appointed extra staff to MABS and it is important the assessments are put together. It is also important that people would provide all of the required information. In my experience of those with debt problems, information is sometimes given in dribs and drabs. It is important that they provide all of the information so a holistic view can be taken of their problems. We must do all we can to help people who have financial problems.

I stress that financial problems are in no way confined to mortgage holders. A very high percentage of those with debt problems are living in rented accommodation, therefore, it is simplistic to think the mortgage issue is the only aspect of this problem. It is a new issue that has grown rapidly but it is by no means the only one.