Michael McGrath (Cork South Central, Fianna Fail)
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194. To ask the Minister for Finance the position regarding the frequency of phone calls from a financial institution to a customer regarding mortgage arrears; if he considers 16 phone calls in 19 days to be excessive; the redress open to the citizen experiencing such harassment; and if he will make a statement on the matter. [26052/14]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank's Code of Conduct on Mortgage Arrears (CCMA) sets out requirements for mortgage lenders dealing with borrowers facing or in mortgage arrears. The CCMA provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lender and that long term resolution is sought by lenders with each of their borrowers. The CCMA applies to the mortgage loan of a borrower which is secured by his/her primary residence.

With regard to the level of communications from a lender to a borrower, the CCMA states that:

21. A lender must produce and implement a policy regarding communications with borrowers. That policy must be approved by the board of directors and must ensure that the requirements of Provision 22 are met.

22. A lender must ensure that:

a) the level of communications from the lender, or any third party acting on its behalf, is proportionate and not excessive, taking into account the circumstances of the borrowers, including that unnecessarily frequent communications are not made;

b) communications with borrowers are not aggressive, intimidating or harassing;

c) borrowers are given sufficient time to complete an action they have committed to before follow up communication is attempted. In deciding what constitutes sufficient time, consideration must be given to the action that a borrower has committed to carry out, including whether he/she may require assistance from a third party in carrying out the action; and

d) steps are taken to agree future communication with borrowers.

Communication is defined, in the CCMA, as "the imparting or exchanging of information between a lender and a borrower by speaking, on paper or another durable medium, or using any other medium".  In addition, a lender must maintain recordings of all Arrears Support Unit telephone calls made to or from a borrower in relation to his/her arrears or pre-arrears.  The intention of this provision is to strengthen protection for borrowers by facilitating compliance monitoring. 

For mortgage loans not secured by a primary residence, consumers are afforded protection under the Consumer Protection Code 2012. This Code states that:

8.13  A regulated entity must ensure that the level of contact and communications from the regulated entity, or any third party acting on its behalf, with a personal consumer in arrears, is proportionate and not excessive.

8.14  Each calendar month, a regulated entity, and/or any third party acting on its behalf, must not initiate more than three unsolicited communications, by whatever means, to a personal consumer in respect of arrears.

The three unsolicited communications include any communication where contact is attempted but not made with the personal consumer but do not include:

a) any communication that has been requested by, or agreed in advance with, the personal consumer; and

b) any communication to the personal consumer the sole purpose of which is to comply with the requirements of this Code or other regulatory requirements.

If a borrower is not happy with the way that their lender is dealing with them or if they think they are not complying with the Codes, the borrower can make a complaint to their lender. Borrowers can also make an appeal to the lender's Appeals Board. If the borrower is not happy with the outcome of the appeal/complaint made to the lender they can refer the matter to the Financial Services Ombudsman (FSO). Further information on how to make a complaint to the FSO is available at . The FSO can work with the Central Bank to address persistent patterns of complaints.

I cannot comment on the  case to which the Deputy refers as I do not have specific details. I have previously informed the House that my officials are developing legislation on the sale of loan books to unregulated entities. This will address concerns surrounding the continued applicability of the Codes after loan books are sold to unregulated entities.