An agreement to help resolve mortgage disputes has been reached between two leading agencies.
The deal struck between the BPFI (Banking and Payments Federation Ireland) and MABS - the State-backed Money Advice and Budgeting Service - aims to settle disagreements between lenders and distressed mortgage holders.
Significantly, it is now supported by leading credit servicing firms as well as banks.
The agreement extends to so-called vulture funds, which have been the subject of controversy for how they handle home repossessions.
Angela Black, the chief executive of the Citizens Information Board, has welcomed an agreement.
Ms Black told RTÉ radio’s Morning Ireland that while she welcomes the agreement, she still has concerns about the nature of vulture funds who want to “get in and get out quickly” to make a profit and do not take the time to develop a relationship with clients in mortgage distress.
Credit Servicing Firms, (more commonly known as vulture funds) are now subject to regulatory oversight by the Central Bank.
Under the new agreement MABS will now have the authority to engage directly with vulture funds in the hope of coming up with terms that can be met by clients in mortgage distress.
The agreement is welcome, but it is “a bit late” added Ms Black. “This is still a huge problem.”
She also said that she hoped banks “with their own internal problems” will not allow such issues to have an impact on the agreement.