KBC Bank Ireland continues to work with customers in difficulty
29 June 2012
KBC Bank Ireland continues to work with customers in difficulty
However the bank remains cautious about the impact of some elements of the Personal Insolvency legislation
Friday, June 29, 2012 KBC Bank Ireland welcomes the reform of the Bankruptcy framework and the introduction of mechanisms to deal with significant levels of unmanageable debt.
Speaking today on publication of the legislation, John Reynolds, CEO, KBC Bank Ireland said “Both Government and the individual banks are working towards a common goal of assisting homeowners in difficulty. While we welcome the introduction of the bill we remain cautious about the potential unintended consequences of certain elements of the proposed legislation.”
The impact of the inclusion of mortgage debt in the bill is one concern, given that this is untried and untested in the proposed form. Depending on how mortgage debt is treated it could have significant unintended consequences on the availability of funding and therefore the supply and pricing of new mortgage credit.
He said that KBC Bank is also concerned that the scope of the new personal insolvency regime will cover debt up to €3 million.
“This is contrary to the primary purpose of the personal insolvency plans as it will result in the inclusion of borrowers of a commercial nature”.
Mr. Reynolds said “We are disappointed that the legislation does not resolve the legal impediment created by the Justice Dunne Judgement prohibiting repossessions. While repossessions remain the last and least desirable resort for KBCI, there are cases where customers won’t work with KBCI to resolve their mortgage arrears issue and as a last resort we need to be in a position to repossess.”
KBC Bank Ireland welcomes the emphasis placed on customers firstly engaging with their bank to resolve their mortgage arrears issue. KBC Bank has an extensive outreach programme in place for our customers experiencing difficulty. The Bank engages proactively with all its customers who are finding it difficult to meet their mortgage repayments to find a roadmap to recovery. Working with customers according to their individual circumstances, we develop solutions which allow the customer to maintain their home while meeting their financial obligations.
“While the legislation is designed to assist those who truly cannot meet their financial obligations, the experience of the Bank is that the vast majority of customers can repay their mortgage debt and we are introducing more long term resolution options to offer further support to these customers.
We will be piloting a number of these long term mortgage resolution options with customers over the coming months such as the introduction of a mortgage to rent scheme” concluded Reynolds.
Ends.
For reference: Laurie Mannix / Mike Miley, MKC Communications 01 7038600
About KBC Bank Ireland plc:
KBC Bank Ireland plc is regulated by the Central Bank of Ireland. KBC Bank Ireland plc is a wholly owned subsidiary of KBC Group NV, an integrated bancassurance organisation headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele. KBC holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world. KBC Bank Ireland plc has a strong presence in Ireland where it has been operating for nearly 40 years providing lending and investment services.
