Banks urged to train staff dealing with struggling mortgage-holders

The president of the Irish Association of Suicidology has called on banks to train staff how to deal with struggling mortgage-holders and warned that more people are taking their lives because of debt.

Fine Gael TD Dan Neville spoke of borrowers being “hounded” by banks, saying the rate of suicide had risen during the recession. The Limerick West TD’s comments came as the Dáil debated a Fianna Fáil motion calling for more rights for borrowers and the establishment of an independent mortgage resolution office.

“There are many vulnerable people being dealt with by bank officials. We should not generalise as there are good people in banks, but we have already heard about people being hounded and who have had unsolicited visits to their house by mortgage lenders.

“The banks must be conscious of the psychological impact experienced by someone in mortgage difficulty or debt. Research going back to 1890 demonstrates that suicide and mental illness increase in times of recession,” he said.

He said banks must protect vulnerable customers.

“We have heard anecdotally and factually that the way some people in banks handle clients has led to suicide attempts. There has been a big increase in attempted suicide and incidents of self-harm in addition to suicide.”

Mr Neville said training for bank staff was insufficient, adding: “All those working on the frontline in mortgages should have special training.”

Comments by TDs from Fianna Fáil during the debate angered Gaeltacht Affairs Minister Dinny McGinley who defended the Government’s record in handling the mortgage arrears crisis.

He said the failure of some borrowers to deal with their debt would have an impact on the greater population.

“However, neither can we allow situations to arise in which people who have the capacity to repay their debts renege on their commitments.”

Labour and Dublin South East TD Kevin Humphries said families needed to be able to stay in their homes and that banks must meet their targets resolving debt.

The troika has told the Government that banks must have a quarter of mortgage-arrears cases resolved in just over six months’ time.