Brokers say law still gives banks debt veto

Legislation passed through the Dáil only weeks ago designed to strengthen the rights of mortgage and debt holders in dealing with banks, still gives lenders the power of veto over distressed borrowers, the country’s largest brokers’ group has claimed.

The Personal Insolvency Amendment Bill 2014 was recently passed by the Dáil and is due to be soon written into the statute books. It was meant to strengthen protections for consumers when striking deals with lenders over debt they cannot repay.

However, according to PIBA, which represents 890 financial brokers, including mortgage brokers, the law has been hollowed out that banks have retained a veto when voting for deals on debt deals with borrowers.