Fianna Fáil has today proposed a major clampdown on debt management companies as part of a package of suggested reforms in the area of family and personal debt.
The party wants to see closer scrutiny of the debt management sector, which is currently unregulated.
The party also wants to give the courts new powers to avoid banks repossessing homes and to rescind a mortgage agreement if it believes mortgages were granted in a reckless manner.
Publishing its latest policy document today, Fianna Fáil said it was putting forward a number of legislative and policy proposals to deal with the effects of mortgage debt in Ireland.
The party cited recent Central Bank figures showing 6.3% of private residential mortgage accounts in arrears for more than 90 days.
"The figures show that at the end of March 2011there were 782,429 private residential mortgage accounts held in the Republic of Ireland to a value of almost €116bn," the party said.
"Of these, 86,271 (or 11%) accounts are either in arrears greater than 90 days or have been restructured and are not in arrears as at the end of March 2011.
"The message is clear: at least one in 10 mortgages in Ireland today is in trouble."
Two bills - The Family Home Bill 2011 and The Regulation of Debt Management Advisors Bill 2011 - deal with protecting the family home and regulating debt management companies
In addition, Fianna Fáil said it wants to see the implementation of a radical reform of the Mortgage Interest Supplement Scheme, and the adoption of the Law Reform Commission’s recommendations on personal insolvency, which include the establishment of a Debt Enforcement Office.
"The package of measures published today, including two new Bills and a series of additional initiatives, will have the effect of making it extraordinarily difficult for lenders to remove people from their homes," said Fianna Fáil Spokesperson on Public Expenditure Michael McGrath, announcing the initiative.
"The Family Home Bill and the Regulation of Debt Management Advisors Bill will significantly empower those in difficulty and afford greater protection to them."
“The fears and frustrations of the many thousands of people caught in a spiral of unmanageable debt need to be addressed as an absolute priority," Deputy McGrath added.
"Keeping families in their homes is the right thing to do for our society and our economy."
The party wants to see closer scrutiny of the debt management sector, which is currently unregulated.
The party also wants to give the courts new powers to avoid banks repossessing homes and to rescind a mortgage agreement if it believes mortgages were granted in a reckless manner.
Publishing its latest policy document today, Fianna Fáil said it was putting forward a number of legislative and policy proposals to deal with the effects of mortgage debt in Ireland.
The party cited recent Central Bank figures showing 6.3% of private residential mortgage accounts in arrears for more than 90 days.
"The figures show that at the end of March 2011there were 782,429 private residential mortgage accounts held in the Republic of Ireland to a value of almost €116bn," the party said.
"Of these, 86,271 (or 11%) accounts are either in arrears greater than 90 days or have been restructured and are not in arrears as at the end of March 2011.
"The message is clear: at least one in 10 mortgages in Ireland today is in trouble."
Two bills - The Family Home Bill 2011 and The Regulation of Debt Management Advisors Bill 2011 - deal with protecting the family home and regulating debt management companies
In addition, Fianna Fáil said it wants to see the implementation of a radical reform of the Mortgage Interest Supplement Scheme, and the adoption of the Law Reform Commission’s recommendations on personal insolvency, which include the establishment of a Debt Enforcement Office.
"The package of measures published today, including two new Bills and a series of additional initiatives, will have the effect of making it extraordinarily difficult for lenders to remove people from their homes," said Fianna Fáil Spokesperson on Public Expenditure Michael McGrath, announcing the initiative.
"The Family Home Bill and the Regulation of Debt Management Advisors Bill will significantly empower those in difficulty and afford greater protection to them."
“The fears and frustrations of the many thousands of people caught in a spiral of unmanageable debt need to be addressed as an absolute priority," Deputy McGrath added.
"Keeping families in their homes is the right thing to do for our society and our economy."
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