Banks’ mortgage arrears policy queried

Banks will today be asked to explain the rationale behind their “sign before we talk” confidentiality-clauses on agreements with customers in mortgage arrears.

Ciarán Lynch, the chairman of the Oireachtas finance committee, will today write to individual lenders to seek a “full and complete” explanation as to why mortgage agreements for customers in arrears should be kept secret.

It follows the publication of the revised code of conduct on mortgage arrears, which allows banks to use “fair” confidentiality clauses where accounts are being restructured.