FINE Gael Cork South West TD, Jim Daly has said the way forward in resolving issues relating to mortgage arrears centres on better communication between banks and the borrowers who may find themselves in financial difficulty.
“If a sustainable path is to be set out in terms of addressing mortgage arrears, the first step has to be improving the communication between the borrower and the lender. “Financial institutions have to address the manner in which computer generated letters are issued to customers within just a few days of an account going into arrears and those in financial distress must learn not to ignore the issue but to talk to their loan provider about their current situation,” he said.
He added, “In many cases where loan repayment dates are missed, people are just running financially a few days behind schedule.
“When letters are received from the banks, however, people often feel intimidated and chose not to address the issue.
“If banks took a more measured approach to the situation, however, and reassigned a greater number of dedicated staff to the area of dealing with distressed accounts, allowing for borrowers to meet more easily with officers of authority within the banks, the lines of communication would be opened up and the situation could be satisfactorily addressed.”