Aideen Hayden (Labour) | Oireachtas source

I echo Senator Bacik's approval that some personal insolvency arrangements, or PIAs, have been fast-tracked by agreement with some lenders. I highlight the plight of those who are borrowing from certain financial institutions which have made it abundantly clear that they do not intend to co-operate with the insolvency process and write down debt on family homes. I reiterate the objections I voiced previously to the effect that it is unacceptable that some financial institutions have made it clear that they will not co-operate with a body established statutorily to assist people in mortgage distress.

On that note, I raise concerns in relation to the financial ombudsman. It is perfectly clear from appearances before the Joint Committee on Finance, Public Expenditure and Reform and statements its representatives have made that the ombudsman's office views its remit very narrowly in terms of regulation of the code of conduct on mortgage arrears and any other issues relating to personal debt and mortgage insolvency. It is high time we reviewed the legislation underpinning the ombudsman. It is not acceptable to have an independent ombudsman's office which sees itself as having no remit other than to decide whether procedures have been followed to the letter of the law. It has no remit in relation to fairness and in particular as to whether any option offered by a bank is fair and sustainable. In the current environment where some banks are behaving more responsibly than others, it is not good enough to have a so-called independent ombudsman's office which considers that it has no remit whatsoever in this regard.