Courts must have more powers as banks continue to break mortgage code – Naughten

In Families by Denis Naughten

Banks must be blocked from making families homeless 

 

Courts must be given the power to stop families being thrown onto the street if their homes are to be repossessed, claims Denis Naughten.

 

“It is again clear from today’s reports of inspections by the Central Bank that Irish lenders are not prepared to comply with any code of conduct, and the only way to protect vulnerable families is to provide the courts with greater powers,” stated Denis Naughten. 

 

“Today’s report does not surprise anybody; firstly that the Central Bank through its own inspections has found that all seven Irish mortgage lenders failed to comply fully with the Code of Conduct on Mortgage Arrears and secondly, that the Central Bank is not prepared to name the banks which are the biggest offenders.

 

“Is it any wonder that almost four family homes are being repossessed or surrendered each day at present, with the banks bullying families into unsustainable situations, such as seeking additional payments even though they had already entered into repayment arrangements?

 

“Clearly, such tactics are forcing even more families into arrears and leaving them in a situation where they are facing repossession and homelessness.

 

“To help move the balance of power from the banks and stop families being left on the street battling to find temporary accommodation, I’ve tabled a proposal to the Finance Minister which will allow the Courts to put a stay on any repossession of a family home until alternative accommodation is secured by the family in question.

 

“The proposal would introduce a new safeguard so that in any repossession proceedings in respect of a borrower’s principal private residence or family home, the court has the power to adjourn the proceedings or make the order with a stay. This would be until either the court is satisfied that the family has means to meet their housing need that would be created by the order for possession or is satisfied, by appropriate evidence from the relevant local housing authority, that the housing need created by the order for possession can be met from the means of the said Council.

 

“The greatest fear of many Irish people at present is the prospect of losing their family home. This is compounded by the current housing/rental crisis which can leave many families fighting the prospect of homelessness. While this measure will not solve either problem it is an additional tool to deal with the current crisis and removes some of the powers which some banks are willing to abuse, and is therefore an important additional option available to the courts.

 

“With more distressed mortgages ending in repossession, family homes are being sold off to investors for less than many people can actually afford to pay if offered reasonable resolutions. Some of these home owners are then finding themselves homeless and dependent on already overflowing housing lists, compounding the problem for all those awaiting housing.

 

“Minister Noonan has described the proposal as ‘interesting’ and has asked that I table it for further debate. As a result, I now hope that the Government will act in a responsible manner and accept my proposal and at least provide a small safety net to those families who are about to lose their home,” concluded Denis Naughten.

ENDS

Editors note: This proposal was already tabled as a Report Stage Amendment to the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 however it was ruled “out of order by the Ceann Comhairle”

See wording here: https://denisnaughten.ie/2015/06/16/families-must-get-alternative-home-before-repossession-considered-naughten/

Listen to Denis Naughten’s interview on the news at 1:

http://www.rte.ie/radio1/news-at-one/programmes/2015/0624/710352-news-at-one-wednesday-24-june-2015/?clipid=1914598