Dinny McGinley (Donegal South West, Fine Gael)
Link to this: Individually | In context

Question 59: To ask the Minister for Social Protection if he is satisfied with the capacity of the money advice and budgetary service to negotiate on people's behalf with financial institutions and sub-prime lenders regarding mortgage arrears; and if he will make a statement on the matter. [21675/10]

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

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 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 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. In 2009 some 2,618 special accounts were set up with the local Credit Unions.

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 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. An operational protocol 'Working Together to Manage Debt' is 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 applies to all client debts, including mortgage debt, owed to the major lending institutions in Ireland and includes a commitment that no legal action will be taken as long as there is compliance by the client with an agreed repayment plan.

Last year an additional 19 money advisers were appointed to MABS companies throughout the country. They have been fully trained in the application of money advice work and the relevant codes and legislation relating to mortgage debt. I am satisfied that MABS provides a high quality personal service to assist people in overcoming their indebtedness and managing their finances. I am confident that the money advisors are trained and equipped to deliver this important service to the members of the public who require it.