Catherine Byrne (Dublin South Central, Fine Gael)
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Question 261: To ask the Minister for Social Protection the role played by his Department in enforcing the code of conduct for money lenders and credit companies here; the way his Department deals with problems experienced by persons who become indebted to money lenders or credit companies; and if he will make a statement on the matter. [34318/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
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The Department does not have a role in enforcing the Code of Conduct on Mortgage Arrears (CCMA) or the Consumer Protection Code for Licensed Money Lending. This is a matter for the Central Bank and Financial Regulator.

However, the Citizens Information Board, which comes under the aegis of the Department, is responsible for the Money Advice and Budgeting Service (MABS). There are 51 MABS companies providing money advice, free of charge, to clients operating from 65 locations around the country, as well as the National Traveller MABS which operates on a national basis. In addition, MABS National Development Limited (NDL) is funded by the CIB to provide a national support and development service to local MABS companies.

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.

The MABS money advisers provide 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 clients 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.

I am satisfied that MABS provides a high quality personal service to assist people in overcoming their indebtedness and managing their finances.