Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 131: To ask the Minister for Finance the avenue open to a person (details supplied) who was refused a mortgage; and if he will make a statement on the matter. [18215/11]

Michael Noonan (Limerick City, Fine Gael)
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I would like to inform the Deputy that I, as Minister for Finance, have no responsibility with regard to the provision or refusal of a mortgage to a particular individual. The Central Bank's Consumer Protection Code is a set of general principles combined with more detailed requirements in certain areas. It requires financial institutions to act in the best interests of their customers by selling them products that are suitable, explaining why the products offered are suitable and treating customers fairly if things go wrong. A financial institution must comply with the general principals of the Code in all its dealings with customers.

The 'Knowing the Consumer Process', set out in the Code, involves, inter alia, gathering relevant information from consumers about their financial situation, their individual circumstances and needs. Based on this information the financial institution is required to complete a Suitability Process' where only products suitable to that particular consumer are offered. While affordability is a prime component of suitability, a fuller consideration of a consumer's individual circumstances and needs would be required in order to comply with the 'Suitability Process'. In this regard, when assessing suitability in relation to mortgage products, the Central Bank has informed me that it is of the opinion that factors such as, but not limited to employment, income and repayment capacity, purpose of borrowings, type and length of loan, plans for early redemption, attitude to fixed/variable interest, age, savings track record, loan to value ratio, should be considered. As suitability is specific to the circumstances and needs of each individual consumer, financial institutions should be satisfied that written statements reflect an assessment of each individual consumer's specific circumstances and needs, thereby the financial institution may meet the 'Knowing the Consumer' process, i.e. requirements of the Code.

If a consumer feels that he or she has been improperly treated, or that he or she has grounds for complaint for some other reason, then a complaint may be made directly to the financial institution concerned. If the consumer is not satisfied with the response received from the institution, there may be grounds to forward the complaint to the Financial Services Ombudsman (FSO), who has the statutory powers to investigate complaints against financial services providers. The FSO will only consider a case once the internal complaints procedure within the financial institution concerned has been followed. The Code outlines the complaints handling process up to and including the role of the FSO.