Central Bank reviews 'challenging' documentation for distressed borrowers in arrears  

Requirement for banks to collect pages of documentation from distressed borrowers when they fall behind in repaying loans to remain

Requirement for distressed borrowers coming off Covid payment breaks to fill in pages of documentation and provide a substantial number of income and loan documents has long been criticised as too onerous by debt advisers. Picture: iStock

The Central Bank is reviewing but not scrapping the "challenging" requirement for banks to collect pages of documentation from distressed borrowers when they fall behind in repaying loans.

Mortgage brokers have said the huge rise in unemployment in the past year and the increase in arrears in both mortgage and unsecured loans showed the weaknesses of banks reviewing payment arrears on a case-by-case basis.