Fianna Fáil Spokesperson on Justice Niall Collins has described the new personal insolvency regime as ‘fundamentally flawed’, as the banks still hold all the cards.
Deputy Collins said the new insolvency guidelines published today will not change the fact that Minister Shatter’s new framework is essentially a Bankers’ Charter.
“These guidelines will provide little comfort to families crippled by debt. When it comes down to crunch talks with debtors, the balance of power will remain firmly in favour of the banks,” said Deputy Collins.
“The Government has ensured that the dysfunctional banking system will still hold all the cards in personal insolvency negotiations. As long as the banks retain a veto, ordinary homeowners will continue to struggle in their efforts to get a fair deal and secure a decent future for their families.
“The thousands of people across the country who are simply unable to cope with crippling mortgage and personal debt do not need a system that allows the banks to retain all the control. What they need is an independent debt settlement office that will ensure fairness and consistency in insolvency agreements. I and my party have published legislation to allow for this and it is deeply disappointing that the Government has failed to consider it.
“Minister Shatter has described this as ‘the best solution’. But an insolvency regime needs to deliver for those in genuine difficulty who have no other way out. It needs to offer a fair and realistic way forward. Unfortunately, this falls far short of that mark,” said Deputy Collins.