Bernard Durkan (Kildare North, Fine Gael)
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34. To ask the Minister for Finance the extent to which he can influence lending institutions particularly those that have acquired loan books from original lenders to give particular preferential and sympathetic treatment to family home owners, especially those who continue to make payments to the best of their ability during the economic downturn and keeping in mind the fact that such institutions have acquired the said loan books at a considerable reduction of face value; and if he will make a statement on the matter. [4664/15]

Michael Noonan (Limerick City, Fine Gael)
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The lending institutions, including those which have acquired loan books, are independent commercial entities. However, the Deputy will be aware that Second Stage of the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 will be taken in the Dáil today and tomorrow (4^thand 5^thFebruary).

The purpose of this legislation is to protect consumers whose loans are sold by regulated financial service providers to unregulated firms. It will address concerns surrounding the continued applicability of the Central Bank's codes and access for borrowers to the Financial Services Ombudsman after loan books are sold. 

This legislation will ensure that borrowers retain their existing protections when their loan is sold.  A key element of this is the protection of distressed borrowers.  The Code of Conduct on Mortgage Arrears (CCMA) was revised in 2013 to strengthen consumer protections, where necessary, and to ensure that the Code is facilitating the resolution of each case in a fair, sustainable and transparent manner. 

The CCMA is a statutory Code issued under Section 117 of the Central Bank Act 1989.  The CCMA's consumer protection framework ensures 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. Under the CCMA, borrowers have the right to appeal to the lender's Appeals Board if they are not happy with the alternative repayment arrangement offered or where a lender declines to offer an alternative repayment arrangement, or if they believe they have been wrongly classified as not co-operating.The CCMA provides that such an appeal must be considered by personnel who have not been previously involved in the case.