Brendan Griffin (Kerry South, Fine Gael)
Link to this: Individually | In context

Question 54: To ask the Minister for Finance his plans regarding a situation with financial institutions (details supplied); the steps he will take to address this matter; and if he will make a statement on the matter. [26450/11]

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

As the Deputy is aware, the day to day running of a bank's operations is a matter for the Board of the relevant bank. Commercial decisions such as the fixing of interest rates etc are matters in which I have no direct function. The rates of interest charged on mortgages are normally determined by the terms of the mortgage agreement. If a bank or mortgage provider unilaterally changes the terms of a mortgage agreement, the mortgage holder can challenge the decision under contract law or refer the matter to the Financial Services Ombudsman who will adjudicate in the matter. In a situation where a mortgage is a variable rate mortgage, then subject to the mortgage agreement and consumer law, the interest rate can be varied from time to time, depending on the market and/or the particular requirements of the mortgage provider.

If the Deputy can provide more specific information or a particular example it may be possible to address the matter in a more detailed manner.