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More clarity needed on Central Bank pilot scheme – Doherty

8 May, 2013 - by Pearse Doherty TD

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.

Speaking this evening Deputy Doherty said;

“I am happy to see a proactive approach from the Central Bank and the introduction of a system, which, if adopted, would provide greater transparency for borrowers. Anything which drags the banks into talking about reasonable arrangements is a positive step and I am glad that the major banks have indicated a willingness to engage.

“MABS (Money Advice and Budgeting Service) should be supported and should play the role of the third party Service Provider. MABs have the skills and a strong record of standing up for the consumer.

“I do have many questions on the scheme.

“Why only weeks after the Insolvency Service began taking calls has this alternative pilot scheme been launched?

“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 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.”

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