Clare Daly (Dublin North, United Left)
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52. To ask the Minister for Finance if he will formally request from Ulster Bank the details of its procedures for dealing with shortfall unsecured debt, consequent to the proceeds from the sale of a family home not covering the original amount borrowed to buy the house. [13538/15]

Michael Noonan (Limerick City, Fine Gael)
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Subject to compliance with relevant statutory or regulatory requirements, decisions on credit are a commercial matter for the individual financial institution.  Accordingly, the particular policies and procedures put in place by credit institutions to deal with their impaired or distressed loans are commercial matters for the individual credit institution and I have no role in such matters.

However, there are certain consumer protection regulatory requirements in place that apply to all regulated mortgage lenders.  On a general level, the Consumer Protection Code requires financial service providers to act honestly, fairly and professionally in the best interests of its customers.  In addition, the Code of Conduct on Mortgage Arrears (CCMA) contains a number of further protections for a person who is in arrears on a mortgage secured on his or her primary residence.  The CCMA also provides that, where a lender disposes of a property that has been repossessed, the lender is obliged to provide information to the borrower on his/her liability for

1. the balance of the outstanding debt (if any)

2. details and amount of any costs arising from the disposal of the property which have been added to the mortgage loan account and

3. the interest to be charged on the remaining balance (if any).

As the Deputy has indicated, unless the shortfall amount has been otherwise secured it will, following the sale of the property, be an unsecured debt and can, if necessary, be treated as such in the new insolvency frameworks provided for in the Personal Insolvency Act.  Furthermore, any insolvency arrangement put in place under that Act to deal with a mortgage shortfall will, in order to protect the interests of debtors and any dependants, have regard to the Insolvency Service of Ireland income guidelines on a reasonable standard of living and reasonable living expenses.