James Reilly (Dublin North, Fine Gael)
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Question 75: To ask the Minister for Social and Family Affairs if she is satisfied with the capacity of the Money Advice and Budgeting Service to negotiate on a person's behalf with financial institutions and sub-prime lenders with regard to mortgage arrears; and if she will make a statement on the matter. [40656/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The money advisers throughout the country focus on providing assistance, advice and intense support to people who have financial difficulties. The money adviser works out a budget, 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 their local Credit Union into which an agreed amount of money is lodged regularly and from which each month the money adviser makes the repayments to the creditors on behalf of the client.

Focused training programmes designed to equip money advice staff and local management boards to meet the demands on the services are provided by MABS NDL, the national support company. In addition, MABS NDL has introduced a number of community education and other initiatives to assist the local services in managing their increased caseloads.

These include a money management education programme for people facing redundancy to inform them about managing on a reduced income and how to avoid getting into debt.

Under the statutory code of conduct on mortgage arrears published by the Financial Regulator, all financial institutions including the banks and sub-prime mortgage lenders must, where circumstances warrant it, refer a borrower in difficulty for guidance to a local MABS office or to an appropriate alternative.

A new operational protocol 'Working Together to Manage Debt' is now in place and is the result of almost 2 years work by MABS NDL and the Irish Banking Federation (IBF), the main representative body for the banking and financial services sector. The protocol sets out an agreed process by which IBF members and the MABS money advisers will approach debt problems experienced by clients. The protocol includes a commitment that no legal action will be taken as long as there is compliance by the client with an agreed repayment plan.

I am confident that the MABS is well equipped to provide a high quality personal service to assist people in overcoming their indebtedness and managing their finances.