Pearse Doherty (Donegal South West, Sinn Fein)
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174. To ask the Minister for Finance if he has any concerns over the independence of StepChange Debt Charity as the selected third party service provider for the Central Bank's pilot scheme for multi-debt restructuring given that it is funded by financial institutions. [37308/13]

Pearse Doherty (Donegal South West, Sinn Fein)
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175. To ask the Minister for Finance the number of financial institutions currently operating here funded directly or through their British associates, StepChange Debt Charity. [37309/13]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 174 and 175 together.

As the Deputy is aware, many distressed borrowers have multiple debts with different lenders and have to deal with each lender on each debt. This makes it difficult for a borrower and his or her lenders to address the personal debt difficulties on a whole of debt basis.

In view of this, at the start of March the Central Bank commenced a process to facilitate the development of a co-ordinated approach among lenders to the resolution of multiple debts owed by distressed borrowers. The Central Bank has informed me that it facilitated the process whereby, following a Request for Information to a number of parties, the Central Bank announced in July 2013 that the lenders participating in the scheme had appointed StepChange Debt Charity (StepChange) as the service provider for the scheme.

The aim of the pilot scheme, which is voluntary by both debtors and creditors, is to achieve sustainable and fair outcomes without the need for the borrower to enter the statutory insolvency process. It is focused on enhancing cooperation between lenders of secured and unsecured debt at an early stage.

The Central Bank has informed me that StepChange is a UK based not-for-profit organisation with over 20 years' experience giving free and impartial advice to people who are struggling with problem debt. StepChange will operate the pilot scheme on behalf of participating lenders, engaging directly with distressed borrowers to establish appropriate loan modifications as part of a longer term resolution of their financial difficulties.

I understand that in the UK, StepChange is funded by creditors. This is made possible by the charitable contributions that creditors make to Stepchange. Details can be found at . The Central Bank has advised that under the provision of Section 33AK of the Central Bank Act, the Central Bank cannot comment on the funding provided by individual financial institutions to third parties.