East Galway Labour Senator, Lorraine Higgins, today warned the Central Bank against increasing the number of days per month which a mortgage lender can contact its customers who are in arrears.

"I am concerned at reports that the Central Bank is seeking to review its code of conduct, and increase the number of times per month in which customers who are in arrears can be contacted. Currently under the Non-Fatal Offences against the Person Act 1997, customers who are in arrears are protected from prolonged communication from lending institutions that seek to deliberately distress or humiliate them. Any move to exceed the current limit of three communications by the lender per month could require a change to this law.

-- Advertisement --

"While it's understandable that in order for our lending institutions to return to profitability, they must seek customer repayments; the method in which they seek this repayment must continue to be conducted in a responsible manner. Suicide rates in Ireland remain shockingly high, I am concerned that any changes to the existing rules will place increased pressure on struggling homeowners and could be detrimental to their mental health. The Central Bank must be mindful of any undue consequences caused by changing the current code of conduct.

"Tackling mortgage arrears remains a key priority for this Government. The Keane Report for example, outlines a number of measures to tackle this issue and one of its key recommendations; the Personal Insolvency Bill, was recently published, which will not only give borrowers better negotiation powers when dealing with their banks, but will radically reform Ireland's bankruptcy laws. I am calling on all mortgage lenders to play their part in solving this problem and continue to work constructively and fairly with all its customers."

(CD/GK)