Sinn Féin Finance Spokesperson Pearse Doherty TD has said the Central Bank’s pilot scheme on dealing with distressed borrowers with multiple debts needs to be clarified before any judgment on its usefulness can be made.
He welcomed the bank’s “proactive approach” and said the new system would “provide greater transparency for borrowers.”
He suggested that MABS (Money Advice and Budgeting Service) should play the role of the third party Service Provider as the organisation has “a strong record of standing up for the consumer”.
Deputy Doherty questioned, however, why an alternative pilot scheme was being launched just weeks after the Insolvency Service began taking calls.
He also asked: “Why are, in the final stages, unsecured creditors like credit unions expected to write-down debt but at no stage is this asked of banks?”
The Donegal South West TD concluded: “The Central Bank needs to clarify what exactly this scheme would mean for struggling homeowners in particular. It must safeguard the Family Home and produce sustainable arrangements including write-downs on secured debt where necessary.
“Sinn Fein will examine this scheme and its potential. It cannot be another scheme where banks can bleed borrowers for longer periods without taking responsibility for their part in the debt crisis.”