Seán Kyne (Galway West, Fine Gael)
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To ask the Minister for Social Protection if a specialist unit of the Money Advice and Budgetary Service could be established which would provide an enhanced mortgage arrears information and advice service and would in effect provide the borrower with the ongoing support required which will undoubtedly increase in necessity the provisions of the personal insolvency legislation. [53276/12]

Joan Burton (Dublin West, Labour)
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In September I announced a three-phased approach to establishing a comprehensive Mortgage Arrears Information and Advice Service to provide the necessary supports to assist people in mortgage distress. The approach differentiates between mortgage information and mortgage advice. The first two elements involve the enhancement of the website and the establishment of a Mortgage Arrears Information Helpline within the Citizens Information Board (CIB) both of which focus on the provision of comprehensive mortgage arrears information in particular to people in arrears or pre-arrears. There are strong linkages between this service, the MABS and other areas of the CIB, as envisaged by the Keane report, to ensure the development of a seamless service for the public.

The third element of the service is the provision of independent financial advice to mortgage holders who are being presented with long term mortgage resolution proposals by their lenders. This advice will be provided by a panel of accountants drawn from members of the main accountancy institutes in Ireland who have agreed to participate and support this independent service.

When a lender is proposing longer-term mortgage resolutions, the lender will advise the borrower to obtain independent financial advice on the proposed arrangement and, if the borrower wishes to avail of this option, that the lender will pay €250 to an accountant of the borrower’s choosing for the provision of this advice.

An operating protocol for the provision of this advice has been agreed between the main accountancy bodies and the lenders. The general scope of the advice will be limited to the borrower’s principal private residence.

To date, some 2,700 accountants have confirmed to their accounting body that they wish to be part of the panel and their details are now listed on a county by county basis on the website .

The Personal Insolvency Bill provides for a Debt Relief Notice for persons with no assets or income with unsecured debts of up to €20,000. With the assistance of an approved intermediary, a person may apply for a Debt Relief Notice which will allow for the full write-off of qualifying unsecured debt after a three year supervision period.The Citizens Information Board, which has the statutory responsibility for MABS has agreed to my request that MABS be an approved intermediary for the purpose of processing applications for Debt Relief Notices. The Citizens Information Board is working closely with MABS to put in place the necessary structures to ensure the successful implementation of this new and important role.