Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

128. To ask the Minister for Finance if he will engage with a bank (details supplied) in respect of persons who availed of a three-month mortgage break who are now being charged fees of over €1,000 in view of the 75% stake in the bank of the State; if he will address this issue with other banks the State has a shareholding in which are charging customers for the three-month break; and if he will make a statement on the matter. [11485/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As the Deputy is aware, I have engaged and will continue to engage extensively with the Banking and Payments Federation (BPFI) and the banks directly in relation to supports for personal and business customers affected by the COVID-19 crisis. Furthermore, officials in my Department are alert to issues raised directly by the public and these inform the Department’s ongoing engagement process and policy formation. All the banks, PTSB included, have continued to evolve and expand the supports they have available and I would expect that this process will continue.

PTSB has introduced a wide variety of solutions designed to help both personal and business customers affected by the COVID-19 crisis including mortgage break and cash flow supports for businesses.

In relation to payment breaks, the Central Bank of Ireland (CBI) has provided information for consumers in its Covid-19 Consumer FAQ section, including the following:

“When you agree a payment break with your lender, it is essential that they explain how the break will affect your loan (including on the overall cost and revised monthly repayments). For example, your lender may spread your repayments over the remaining term of the mortgage/loan, to allow you to repay it within the original term. This means that you will have to pay higher repayments (spread out) over the remaining term of the loan. Alternatively, your lender may offer you the option to extend the term of the loan by the length of the payment break. This spreads your repayments over a longer period. Both options mean your loan will cost you more overall. Your lender should let you know what the additional costs are likely to be.”

The full CBI Covid-19 Consumer FAQ section can be found at the following link:

.

Notwithstanding the above, it is important that I highlight for the Deputy that as Minister for Finance, I am precluded from intervening in how PTSB manages its day-to-day business and relationship with any of its customers.  Decisions in this regard are solely the responsibility of the board and management of the bank which must be run on an independent and commercial basis. The independence of the banks in which the State has a shareholding is protected by Relationship Frameworks which are legally binding documents that cannot be changed unilaterally. These frameworks which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market.