Pearse Doherty (Donegal, Sinn Fein)
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41. To ask the Minister for Finance if his attention has been drawn to instances where banks have rejected mortgage applications but refused to issue letters of refusal to persons wishing to apply for the local authority home loan; if he has had contact with banks in relation to this issue; and if he has considered measures to compel banks to issue letters of refusal where a mortgage application has been rejected. [50706/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provides that, where an application for mortgage credit is refused, the lender must inform the consumer without delay of the refusal.

In cases not covered by the CMCAR, the Consumer Protection Code 2012 provides that, where a personal consumer's application for credit is turned down, the lender must clearly outline to the consumer the reasons why the credit was not approved and provide those reasons on paper if requested. The Central Bank advises that it expects all regulated firms to engage proactively, to take a consumer focused approach and to act in their customers’ best interests at all times.

If a mortgage applicant is not satisfied with how a regulated firm is dealing with them, or they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated firm.

If they are still not satisfied with the response from the regulated firm, they can refer the complaint to the Financial Services and Pensions Ombudsman.