Paul Coghlan (Fine Gael) | Oireachtas source

I am concerned, as I know all Members are, about the absence of MABS and the Irish League of Credit Unions from the Central Bank pilot debt scheme. We learned this week that the well-respected Government-funded body, MABS, has been forced out of the new pilot resolution scheme being set up by the Central Bank because lenders were not happy with their part in the process. That is a worrying development. The Irish Independent quoted a MABS spokesperson as saying they were booted out of the scheme because the MABS approach to debt resolution was not acceptable to certain members. MABS had been proposing a more holistic approach to debt resolution and apparently this was not acceptable to some banks. It now looks as if the Central Bank will seek to get a United Kingdom debt charity or a debt collection service to get involved in place of MABS. That is a very worrying development because it means that the pilot process set up at the initiative of the banks now only comprises the Central Bank and the lenders.

It is devoid of the involvement of those who are concerned about financial services from the perspective of the borrower and the wider general public. The Irish League of Credit Unions opted out because its members regarded it as too one-sided against borrowers. Now the banks have succeeded in getting MABS excluded because they do not like the proposals from MABS. We need to become involved and to find out more about the situation. We need to ensure that the Central Bank is not being led by the nose by some banks.