Banks should not be allowed to increase number of calls to distressed customers, insists FLAC

Banks should not be allowed to increase number of calls to distressed customers, insists FLAC

Noeline Blackwell of FLAC

The Free Legal Advice Centre (FLAC) is objecting to a proposed change to the code of conduct on mortgage arrears that would allow banks to increase the number of calls they make to distressed customers.

FLAC will today make its submission to the Central Bank, which is in the process of revising the code.

Currently banks are not allowed to call customers who are in mortgage arrears more than three times a month. However, that limit is understood to be under review

Director of FLAC Noeline Blackwell said the new code should put pressure on lenders as well as borrowers.

“A lot of the code suggests that borrowers have to cooperate all of the time”, she said.

“We would like to see lenders having an obligation to engage with borrowers in a particular way”.

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