Call for action over those facing eviction

IMMEDIATE action must be taken to protect vulnerable homeowners who are “desperate” and “begging” for assistance, the director of the Free Legal Aid Centre (FLAC) said last night.

Noeline Blackwell said FLAC’s phonelines had been flooded with calls from people looking for information on anything which would allow them to repay their debts.

“Since our media comment last week on the revised programme for government to reform the law around debt enforcement we have had a deluge of calls,” she said.

“People are so anxious and want to know what is new and what is possible. We can tell them our suggestions – to talk and get advice, but it is not enough.”

In an open letter sent to all senators and TDs yesterday, FLAC called for action to protect victims of the economic recession from eviction.

“On behalf of those who are calling our information line, FLAC is therefore pleading with you, the legislators of this country, to take immediate action to protect victims of the economic recession from eviction.

“People need you to act now, before things get even worse for the thousands who literally do not know what to do next,” the letter states.

Ms Blackwell said people needed relief now, before their situations get worse.

“What we hear is that people are very stretched and under pressure and we are also hearing that people they can’t get help in time.”

She said government’s responses so far were inadequate and the state-funded debt relief service MABS was “oversubscribed and underfunded”.

FLAC maintains a range of options need to be looked at – including money and legal advice and capacity to remodel and revise existing loans to take account of changed circumstances and reckless lending.

“All of these changes need to be properly regulated, and the courts must be able to impose terms if parties can’t agree,” Ms Blackwell said.

“When the negotiations with the banks cease at the end of the NAMA legislation, the chance to develop these remedies may be entirely lost.”

In its letter, FLAC also urged the Government to “study closely” the consultation paper on personal debt management and debt enforcement published recently by the Law Reform Commission and to respond to its provisional recommendations for reform by the end of this year, when concrete proposals for new legislation on debt enforcement will follow.

Meanwhile, Fine Gael yesterday proposed a new Home Owner Support Scheme to help protect families facing repossession.

Richard Bruton, party spokesman on finance, said the measure would allow NAMA to take an equity share in a property after negotiating a write-down in the outstanding debt with the relevant financial institution.

“The property owner would then service his or her remaining share of the debt and pay a rental fee to NAMA for the equity share taken by NAMA,” he said.

* www.flac.ie; or call 1890-350250.