Banks offer fresh hope for struggling borrowers

Irish banks are to write off unsecured debt of struggling borrowers under a new protocol unveiled by the Irish Banking Federation (IBF).

The IBF has drawn up an alternative arrangement to the Government’s personal insolvency regime that will see borrowers see their unsecured debt, such as credit card debt, overdrafts and personal loans, written off if a customer continues to make agreed repayments for periods of up to five years.

Director of Public Affairs at Irish Banking Federation, Felix O’Regan said: “This measure is designed to maximise the number of sustainable mortgages and keep as many people as possible in their homes.”