The Clare Champion Clare news, sport, entertainment and local notes
The Government’s announcement of proposed reforms to assist those in mortgage arrears marks progress and is a recognition that there has been an unfair imbalance in the relationship between lenders and borrowers, according to FLAC (Free Legal Advice Centres). The three elements of proposed reform are: The power of the banks to accept or reject any proposal under the Personal Insolvency scheme, thus giving them a veto, is to be subject to review; The mortgage to rent scheme will be strengthened, with revised property value thresholds; Better information and advice available to borrowers through an enhanced MABS. The proposal relating to the bank veto will give circuit court judges the power to overrule an unreasonable refusal by a lender to accept a debtor’s proposed insolvency arrangement. This is a rebalancing of power and should lead to greater fairness. However, the legal rights group pointed out that there is still no provision for FLAC’s long-standing recommendation of a Public Insolvency Practitioner …
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