Jackie Cahill (Tipperary, Fianna Fail)
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265. To ask the Minister for Finance the full procedure whereby a person that has been declined lending by a bank can get the Credit Review Office to review the decision of the bank; if the bank can offer to perform an internal bank review on the matter; the number of times an offer of an internal review before the Credit Review Office is obliged to step in and carry out an independent review; and if he will make a statement on the matter. [47032/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the deputy is aware, the Credit Review Office is a government initiative that helps SMEs who have had an application for credit of up to €3 million declined or reduced by the main banks, and who feel that they have a viable business proposition. This is a strictly confidential process between the business, the Credit Review Office and the bank. Banks who are covered by the Credit Review process are AIB, BOI, Ulster Bank and PTSB.

The Credit Review process is available to borrowers (SMEs, farmers and sole traders) who have had their application for credit refused or reduced, or their existing credit facilities reduced or withdrawn, and feel that the bank’s decision is unjustified. The review process will operate after the borrower has unsuccessfully appealed through the bank’s own internal credit appeals process. If an internal appeal is unsuccessful, the Credit Review Office will undertake an independent and impartial re-evaluation of the bank’s decision.

In addition, the borrowers may appeal where there has been a constructive refusal as defined below:

- Where a decision on an application for a credit facility is not given by the participating institution within 15 working days (beginning from when the bank received all requested information), this shall be regarded as constructive refusal and the borrower may apply for review to the Credit Reviewer.

- Where a borrower considers that the terms or conditions attached to a credit facility or its price are so onerous as to amount to a constructive refusal, the borrower is entitled to apply for a review. The Credit Reviewer shall issue guidance on the reasonableness of terms, conditions and pricing.

Usually, the borrower will have had a credit request declined, and will then have had the decline decision reviewed internally by the bank, who have a separate appeals unit (different review team to the one that initially declined the credit)beforea Credit Review begins.

The borrower can appeal to Credit Review Office any decision in relation to a new facility, or a restructuring of existing facilities – the restructuring may be proposed by either bank or borrower. The borrower may appeal a number of separate refusals. The borrower must request the appeal using a simple application form available on the website www.creditreview.ie.

A small fee is paid (between €100 and €250) as detailed in the Statutory Instrument S.I. No. 127 of 2010.