Michael Healy-Rae (Kerry, Independent)
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92. To ask the Minister for Finance his views on correspondence regarding mortgages (details supplied); and if he will make a statement on the matter. [20162/16]

Michael Noonan (Limerick City, Fine Gael)
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The matter of whether or not a borrower is permitted to rent out their principal private residence without the lender's permission is a matter of contract between the lender and the borrower, which may be provided for in the terms and conditions of the loan agreement. I, as Minister for Finance, have no role in the commercial decisions of individual banks. I have also been informed that the Central Bank has no remit in the commercial decisions of lenders in this regard.

Nonetheless, where a consumer is unhappy with the service they have received from a firm which is regulated by the Central Bank, they are entitled to make a complaint directly to the firm concerned.

Subject to the exclusions set out in Central Bank's (the Code), the Code applies to the regulated activities of regulated entities operating in the State.

Chapter 10 of the Code sets out the procedures and timelines for regulated firms dealing with customer complaints.  If the consumer is not satisfied with the outcome of their complaint, they can refer the matter to the Financial Services Ombudsman. The Financial Services Ombudsman investigates, in an impartial and independent manner, complaints from individual customers and small businesses who have unresolved disputes with financial service providers which are regulated by the Central Bank.  

I would also add that the protections of the Central Bank's Code of Conduct on Mortgage Arrears may apply if the borrower is in arrears or pre-arrears and the property is the only residential property in the State owned by the borrower.

Finally, I would encourage borrowers in difficulties to avail of independent advice.  Organisations such as the Money Advice and Budgeting Service (MABS) provide a national, free, confidential and independent service. MABS have offices throughout the State and advisors available to help individuals address their particular circumstances.