Families face long wait for help with insolvency

Thousands of struggling homeowners may have to wait beyond early autumn for Government measures to help alleviate mounting mortgage debt, Taoiseach Enda Kenny has admitted.

His comments came as it was revealed that families facing crippling debts are waiting close to a month for help from state-funded money and budgeting advice services.

Mr Kenny told the Dáil yesterday that long-awaited measures in the Government’s insolvency bill would be published next month.

But he also admitted that the complexity of the legislation and the expected ensuing debate could see measures for homeowners not enacted until much later this year.

“I hope it will be concluded by early autumn, but I do not want to lock myself into that because there will be much discussion and comment on the bill when it is published,” said Mr Kenny. “Believe you me, a great deal of complicated work has been done on this.”

His comments came as the Coalition accepted Fianna Fáil proposals in the Dáil last night about regulating debt management advisors.

Vulnerable consumers are being taken advantage of by some unscrupulous or “cowboy” operators in the sector, say TDs.

In some cases, up-front fees of up to €750 are demanded from debt advisors, as well as ongoing monthly fees of 15%, say Fianna Fáil.

The Government agreed last night to incorporate the proposals into its own debt management legislation next month.

The Fianna Fáil bill would oblige advisers to set out fees clearly at the start of business. Debt advisers would be banned from handling client monies themselves.

Brian Hayes, the junior finance minister, last night said the bill would not be opposed and instead considered by the Coalition.

He also revealed that families and those in debt were waiting an average three and half weeks for their first appointments with the Money Advice and Budgetary Services, which is funded by the state.

Fine Gael TD Simon Harris said that MABS was “overloaded”, meaning many families were being forced to turn to desperate ways of managing their money. Household debt in Ireland had now amounted to some €184bn, he added.