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FIANNA FÁIL HAS published legislation which would remove the ability of banks to put a veto on the new personal insolvency regime.
The party has this afternoon released the Mortgage Resolution Bill 2013, which – if enacted – would change the current rules which require a majority of creditors to approve a person’s entry to the new system.
Opposition parties have previously complained that the rules mean that people who are burdened with high mortgage debts are effectively barred from entering the insolvency process if their bank, which accounts for most of their debts, disapproves of it.
The bill would also create a new Mortgage Resolution Office which would have the power to issue binding orders to lower interest rates, extend the repayment period by up to 20 years, enforce a repayment ‘holiday’, defer part of the loan for up to 10 years, or to lease a home back to its occupiers at market rates.
“One of the biggest barriers to growth and recovery in Ireland is the number of families and communities struggling under the weight of unsustainable mortgage debt,” said FF’s finance spokesman Michael McGrath.
“Legislators have a responsibility to come forward with a response to this crisis which does not put the banks in control.”
Other orders could be issued to demand interest-only repayments for up to four years, swap part of the debt for a stake in the house, or participate in a deferred interest scheme.
“We believe that there is a fairer way to recovery and that our plans on restoring balance to the relationship between banks and their customers could and should be an important step in that process,” McGrath said.
The bill is likely to be rejected by the government, which has denied that banks have a veto under the current system – which has not fully entered law yet – and which claims that the Central Bank will have adequate supervisory powers in its new mortgage arrears resolution process.
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The old back door exit what a way to go !
Should send it to may as reminder that he won’t forget the starvation of our people
@marty johnbann: yea because she caused it
@marty johnbann: well said marty
What potato famine? Do you mean the British Genocide of the Irish people? This is established fact and calling the famine is pure ignorance
@Rúairí O’ Sullivan:
There is always one…
Should it not read 19th century? Given the famine occurred in the 19th century??
@Bruce van der Gutschmitzer: Don’t be so pedantic.
@Bruce van der Gutschmitzer: it could have been made in the 18th.
They should have used it todayfpr the wedding…
I find this to be offensive. We should bury this dark period of our history forever
@Philip Murphy: Burying our history, that would be an affront to all who died!
‘Bring out your dead’ was the cry.
Where are they from – Clonakilty (God Help Us)
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