Eoghan Murphy (Dublin South East, Fine Gael)
Link to this: Individually | In context

Question 119: To ask the Minister for Finance if he is considering alternative courses of action for lenders other than the current moratorium on the enforcement of repossessions. [23724/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The Deputy may wish to note that a Working Group has been established under the Economic Management Council to consider the state of implementation of the main recommendations of the Mortgage Arrears and Personal Debt Group which published its final report in November 2010. This Group has also been asked to consider and develop further necessary actions to alleviate the increasing mortgage over-indebtedness problem. I expect that the Group will have its work completed shortly.

Eoghan Murphy (Dublin South East, Fine Gael)
Link to this: Individually | In context

Question 120: To ask the Minister for Finance further to Questions Nos. 89 and 93 of 10 May 2011 regarding employment contracts of all the senior management in financial institutions covered by the State guarantee, the stage the review has reached; when it will be completed; and if he will give details of any preliminary details. [23725/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

As the Deputy is aware, in April of this year, the NTMA requested a review of remuneration policies and practices by each of the covered institutions. In that regard, the institutions were asked to consider measures that could be taken to realign staff expectations with regard to remuneration and benefits in the current economic environment and financial circumstances of the banks. The review exercise is ongoing. I fully recognise that there is a real public interest in the levels of remuneration at the covered institutions and I will endeavour to have this completed in the shortest timeframe possible with a view to putting the information into the public domain.

Shane Ross (Dublin South, Independent)
Link to this: Individually | In context

Question 121: To ask the Minister for Finance if his attention has been drawn to the fact that holders of investment tracker mortgages are being aggressively pursued to give up their trackers by banks such as Permanent TSB; if he will intervene to prevent State controlled banks from indulging in such activities against mortgagors; and if he will make a statement on the matter. [23789/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The Central Bank's Consumer Protection Code requires entities regulated by the Central Bank to act honestly, fairly and professionally in the best interests of their customers. Regulated entities must not recklessly, negligently or deliberately mislead a customer as to the real or perceived advantages or disadvantages of any product or service. In accordance with common rule 12 of the Consumer Protection Code, regulated entities have to ensure that all relevant information, and in particular key information, is provided to a consumer in a clear manner. The operation of any agreement between a regulated entity and a consumer must be in accordance with the terms and conditions applying to that agreement. The Central Bank does not investigate individual complaints but if a consumer is not satisfied with the service he or she has received, he or she is entitled to make a complaint by writing directly to the firm concerned. If he or she is not happy with the response received from the regulated entity he or she is entitled to refer the complaint to the Financial Services Ombudsman who has statutory powers to investigate complaints against financial service providers. In the case of a customer experiencing financial difficulties in meeting mortgage commitments or one who is concerned that he/she is in danger of getting into financial difficulties, mortgage lenders must comply with the requirements of the Central Bank's revised Code of Conduct on Mortgage Arrears (CCMA) which came into effect on 1 January 2011. The CCMA applies to the mortgage loan of a borrower which is secured by his or her primary residence, which is defined as a property which is the residential property which the borrower occupies as his or her primary residence in this State, or a residential property in this State which is the only residential property owned by the borrower. Under the CCMA, a lender must have a Mortgage Arrears Resolution Process in place incorporating communication with borrowers, financial information, assessment, resolution and appeals. In exploring all options for alternative repayment arrangements lenders must consider, inter alia, deferred payment, term extension, interest and partial capital payments and interest only arrangements. The CCMA states that lenders "must not require the borrower to change from an existing tracker mortgage to another mortgage type, as part of any alternative arrangement offered to the borrower".