Thomas Pringle (Donegal South West, Independent)
Link to this: Individually | In context | Oireachtas source

299. To ask the Minister for Finance if a company (details supplied) has stated it will commit to the Code of Conduct on Mortgage Arrears; if not, the reason; and if he will make a statement on the matter. [21413/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am informed by the Central Bank that the company referred to by the Deputy is a wholly owned subsidiary of a company that, while not regulated by the Central Bank, has voluntarily agreed to adhere to the Central Bank of Ireland's Code of Conduct on Mortgage Arrears and the parent company confirms this on its website at .

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. All cases must be handled sympathetically and positively by the lender, with the objective at all times of assisting the borrower to meet his/her mortgage obligations.  A lender may only commence legal proceedings for repossession where it has made every reasonable effort under the Code to agree an alternative repayment arrangement with the borrower or his/her nominated representative and the specific timeframes set out in the Code have been adhered to or the borrower has been classified as not co-operating.  

The Deputy will also be aware that the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 is being introduced to regulate the activity of credit servicing, and the credit servicing firms engaged in such activity. When enacted, this Bill will ensure that borrowers retain the protections they had before the loan book was sold, including the protections of the Code of Conduct on Mortgage Arrears and the Consumer Protection Code.  The  Committee stage of this Bill was taken on 27 May and Report stage is expected to be taken on 17 June.