Lenders hit their targets on arrears
BANKS have met the latest targets for making offers to people in mortgage arrears, despite having to be warned by regulators that some of the solutions offered were meaningless.
The Central Bank said lenders had issued proposals to four out of 10 borrowers in trouble by the end of September. AIB, Bank of Ireland, Permanent TSB, Ulster Bank, ACC Bank and KBC Bank were told to propose sustainable solutions to 20pc of cases where mortgages were in arrears by the end of June.
This target rose to 30pc of cases by the end of September.
However, departing director of credit institutions and insurance at the Central Bank, Fiona Muldoon, hit out at some of the offers made. Banks were accused of threatening repossession and then doing nothing in the hope that the mortgage holders would start repaying their mortgage.