Spending limits ‘will be the norm’

Restrictions on what struggling families seeking help with debts can spend their money on, set to be imposed by the new insolvency service, will spread across the banking sector, Finance Minister Michael Noonan has warned.

He made the prediction after Fianna Fáil finance spokesman Michael McGrath expressed concern that the rules set to be unveiled next week could force people seeking insolvency help to quit medical insurance, cancel some cable TV packages, and sell a second car.

Mr Noonan would not be drawn on specifics, but indicated that standards imposed by the insolvency service would soon become the norm across the financial sector.