FLAC welcomes bankers’ commitment to those facing difficulties with mortgage repayments.

10 November 2009

Free Legal Advice Centres (FLAC), an independent legal rights organisation, has welcomed the Irish Banking Federation statement of intent, which, it says will offer protection to some hard-pressed house owners.

According to FLAC's director general Noeline Blackwell "It is helpful that the main banks have committed themselves to genuine discussions to find solutions outside of the courts."

She went on to warn that the proposal, while welcome, is not a sufficient solution for those who are over-indebted and in difficulty:
"This proposal only involves the main bankers. Sub-prime lenders are conspicuous by their absence. The bank's proposal depends on the borrower maintaining the good will of the bank in question in each case. If the bank does not believe that the borrower's efforts are sufficient, they can end the arrangement unilaterally. A wider and more comprehensive solution is needed for borrowers."

/ENDS

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Editors' notes:
1. FLAC (Free Legal Advice Centres) is an independent human rights organisation dedicated to the realisation of equal access to justice for all. It campaigns through advocacy, strategic litigation and authoritative analysis to contribute to the eradication of social and economic exclusion.
2. FLAC recently published a comprehensive report on the state of Ireland's law on personal debt: To No One's Credit
3. FLAC has published a Briefing Note on the Code of Conduct on Mortgage Arrears
4. You can read more online about FLAC's work on debt law reform.
5. The latest copy of FLAC's newsletter is available online in PDF format.
6. The Law Reform Commission published its consultation paper on Personal Debt Management and Debt Enforcement in September (see also FLAC comment)