Sinn Féin urges end to bank secrecy on mortgage restructuring

Sinn Féin has called on banks to end the practice of keeping secret the process of mortgage restructuring.

The call came after the party published a document which it claims came from AIB and appears to contain an apparent confidential non-disclosure clause for a borrower.

A spokeswoman for AIB said the bank would not be commenting on the matter.

Party finance spokesperson Pearse Doherty said the document appeared to show that banks were trying to keep hidden the manner in which mortgage borrowers in arrears were being dealt with.

The document, entitled Proposed Restructuring of our Facilities with Allied Irish Banks, says the following:

"In consideration of your willingness to enter into negotiations with us, in connection with a possible restructuring of our facilities, we hereby irrevocably undertake and agree as follows:

"Not to disclose to any third party the fact that negotiations are taking place between the bank and ourselves and in the event that an agreement is reached between the bank and ourselves to restructure our facilities, not to disclose to, or use for the benefit of, any third party the fact that such agreement may have been made, nor to make known any details or information in any form (whether written, oral, visual or in any electronic form) relating thereto."

It goes on to say that: "To ensure that disclosure of any information in respect of any and all negotiations taking place between the bank and ourselves or any prospective agreement between the bank and ourselves to restructure our facilities is restricted to agents, employees (if any) and partners and/or directors (if any) of our business having the need to know the same and that each such agent, employee, partner and/or director is bound by confidentiality obligations no less onerous than those contained in this letter and which are evidenced in writing."

Mr Doherty says the document finally "lifts the lid on the bank's veil of secrecy on mortgage deals within the buy-to-let sector".

He said while it was evident that in some instances banks are restructuring mortgages, the described the process as arbitrary and that banks are seeking to keep the details hidden.

Here is the unedited content of the document:

PRE-NEGOTIATION NON-DISCLOSURE UNDERTAKING

To: Allied Irish Banks, p.l.c.

Bankcentre

Ballsbridge

Dublin 4.

Date: [Insert Date]

Re: Proposed restructuring of our facilities with Allied Irish Banks, P.l.c. (hereinafter referred to as "the Bank")

Dear Sirs,

In consideration of your willingness to enter into negotiations with us, in connection with a possible restructuring of our facilities we hereby irrevocably undertake and agree as follows:

1. Not to disclose to any third party the fact that negotiations are taking place between the Bank and ourselves and in the event that an agreement is reached between the the Bank and ourselves to restructure our facilities, not to disclose to, or use for the benefit of, any third party the fact that such agreement may have been made nor to make known any details or information in any form (whether written, oral, visual or in any electronic form) relating thereto.

2. To ensure that disclosure of any information in respect of any and all negotiations taking place between the Bank and ourselves or any prospective agreement between the Bank and ourselves to restructure our facilities is restricted to agents, employees (if any) and partners and/or directors (if any) of our business having the need to know the same and that each such, agent, employee, partner and/or director is bound by confidentiality obligations no less onerous than those contained in this letter and which are evidenced in writing.