LENDERS who breach mortgage codes of conduct will be “named and shamed” by the Central Bank, the Taoiseach Enda Kenny pledged today.
Fianna Fáil’s Seán Ó Fearghaíl told the Dáil it was not acceptable that the Central Bank today reported that seven mortgage lenders had breached the code of conduct.
Mr Ó Fearghaíl said none of the banks was named, nor were the specific breaches, such as putting unfair pressure on lenders in difficulty, linked to any particular lender.
“Surely to God, it’s in the interest of the consumer that this information be publicised,” Mr Ó Fearghaíl said.
The Taoiseach said the issue was being handled by the Central Bank and the next move was up to them. Mr Kenny said he believed it would involve applying sanctions for breaches in a process which would be public.
“I hope the Central Bank will deal with this matter effectively, publicly and swiftly,” the Taoiseach said.
Mr Ó Fearghaíl said he believed people seeking mortgages were entitled to know about the behaviour of prospective lenders and borrowers, who were at the receiving end of a breach, were entitled to see sanctions applied.
The Kildare South TD said he was also concerned that local authorities were taking an increasingly robust stance towards borrowers in difficulty. He said the authorities should look at the behaviour of councillors towards people to whom they lent money to buy a house.