Banks’ reply to home debt ‘inadequate’

BANKS have been criticised by the Central Bank governor over their inadequate response to the mortgage crisis. He has announced a full review into their handling of borrowers facing arrears.

But Patrick Honohan said banks were beginning to write off mortgages in a small number of cases.

It came as Financial Regulator Matthew Elderfield revealed changes were planned to prevent banks contacting customers incessantly over debts. He also appealed for hassled borrowers to contact him and he pledged to act against lenders breaking the code of conduct.