Pearse Doherty (Donegal, Sinn Fein)
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57. To ask the Minister for Finance if his attention has been drawn to reports that a company (details supplied) is writing to all borrowers in arrears demanding all arrears be cleared within 30 days; and if he will make a statement on the matter. [15692/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by the Central Bank of Ireland that it is aware that a regulated entity has written to a number of buy-to-let (BTL) borrowers in arrears and that it is engaged with that particular entity but cannot comment on the specifics of any individual firm.

Any borrower who is concerned or who has received letters should contact their regulated entity directly. If they are not satisfied with how they are treated, they are entitled to make a complaint to the regulated entity. If they are not satisfied with the response they receive, they can make a complaint to the Financial Services and Pensions Ombudsman.

Where a mortgage loan is not secured by a borrower’s primary residence, the arrears handling provisions in Chapter 8 of the Consumer Protection Code 2012 (the Code) apply to personal consumers in arrears. This includes a requirement that “where an account is in arrears a regulated entity must seek to agree an approach (whether with a personal consumer or through a third party nominated by the personal consumer) that will assist the personal consumer in resolving the arrears.” A regulated entity must ensure that the level of contact and communications from the regulated entity, or any third party acting on its behalf, with a personal consumer in arrears, is proportionate and not excessive.

Where an account remains in arrears ten business days after the arrears first arose, a regulated entity must immediately communicate clearly with the personal consumer to establish in the first instance why the arrears have arisen.

Where an account remains in arrears 31 calendar days after the arrears first arose, a regulated entity must within three business days inform the personal consumer and any guarantor of the loan, on paper or on another durable medium, of the status of the account. This information must include the following:

a) the date the account fell into arrears;

b) the number and total amount of repayments (including partial repayments) missed (this information is not required for credit card accounts);

c) the amount of the arrears to date;

d) the interest rate applicable to the arrears;

e) details of any charges in relation to the arrears that may be applied;

f) the importance of the personal consumer engaging with the regulated entity in order to address the arrears;

g) relevant contact points;

h) the consequences of continued non-payment, including where relevant, sharing of data relating to the consumer’s arrears with the Irish Credit Bureau or any other credit reference agency;

i) if relevant, any impact of the non-payment on other accounts held by the personal consumer with that regulated entity including the potential for off-setting of accounts, where there is a possibility that this may occur under existing terms and conditions; and

j) a statement that the personal consumer may wish to seek assistance from MABS and contact details for the MABS National Helpline and the link to the MABS website.

Where the arrears persist, an updated version of the above information must be provided to the personal consumer, on paper or on another durable medium, every three months.

Under General Principle 2.2 of the Code, regulated entities “must ensure that in all its dealings with customers and within the context of its authorisation it acts with due skill, care and diligence in the best interests of its customers.’’

Primary Residence: means a property which is:

1. the residential property which the borrower occupies as his/her primary residence in this State, or

2. a residential property which is the only residential property in this State owned by the borrower.