Banks must be ‘forced’ to engage with insolvency plans

Banks must be "forced" to engage with insolvency arrangements, according to Minister for the Environment Alan Kelly.

Asked if he thought the banks were doing enough for those in mortgage difficulty, he said: “No, I don’t. I think the banks need to change their position and do so quickly.

“I believe that the issue of repossessions is a critical issue and we’re going to have to re-look at it.”

Mr Kelly said the banks needed to engage “at a different level”.

“If that doesn’t start at a level it needs to soon it will be up to Government to act and I think it’s probably near that point now,” he said.

He said the current legislation needed tweaking and the matter would have to be addressed in the very near future.

Banks should start thinking about the consequences of such legislation and begin engaging on the basis that there would be change, he added.

“It’s about forcing the banks to engage, that’s the most important thing.”