Regulatory Alerts2010-02-05
Letter re amendment to Code of Conduct on Mortgage Arrears 5 February 2010
The Financial Regulator issued an amendment to the Code of Conduct on Mortgage Arrears effective 17 February 2010, imposing a mandatory twelve-month waiting period before lenders can seek court enforcement for repossession of a borrower's primary residence. This restriction applies only where arrears persist and the borrower is not deliberately avoiding engagement, with exceptions allowed only in very exceptional circumstances after all reasonable attempts to encourage contact have failed. The amendment is enforced under Section 117 of The Central Bank Act 1989, meaning contraventions may result in administrative sanctions while existing Consumer Protection Code requirements remain in force.
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