Joan Burton's hot potato an internecine battle between state agencies

[monty cardigan]

Joan Burton has a lot on her plate including responding meaningfully to the Keane report and its recommendation of a national mortgage debt advisory service.

Astute observers of recent Oireachtas joint committee and Burton’s stakeholder forum will have noted the unedifying bun-fight that has broken out between MABS and its overseer the Citizens Information Bureau. The latter doesn’t believe the former is fit for purpose to provide the mortgage service. Seems the CIB would like to get its hands on the gig as it is “good” at providing information.

MABS which is a network of state funded independently governed companies is outraged and during the Minister’s recent stakeholder discussion forum two of its three representative arms spoke up in defence of its competencies which no-one questions when it comes to delivering on its mandate. Of course its mandate, competencies and resources are wholly insufficient to respond to the scope and scale of the service required. The CIB appears to think it has the where-with-all to do the job.

All consumer advocates both public sector and private sector flavours (bar a well-known self- promoting eejit who masquerades as one on his own forum) maintain that there has to be a total debt approach. They say that dealing with mortgage debt in isolation won’t do. It’s the case too that private sector solutions such as debt managers, debt advisers and the likes of New Beginnings haven’t the resources to provide a national solution.

So the ball is back in Joan’s court- and as usual the first problem she faces is an internecine squabble between two self-interested public service groups.

[People Korps]

It is amazing ...but I feel that in an authoritarian state her barber would be executed ....it is not just one bad hair day it is generally amazingly insane hair. What is the story there? As to Joan who is amazingly insane sounding I am amazed at Joan Burton and her almost Warhol Superstar unreal-ness

[PaddyJoe]

Joan Burton has a lot on her plate including responding meaningfully to the Keane report and its recommendation of a national mortgage debt advisory service.

Astute observers of recent Oireachtas joint committee and Burton’s stakeholder forum will have noted the unedifying bun-fight that has broken out between MABS and its overseer the Citizens Information Bureau. The latter doesn’t believe the former is fit for purpose to provide the mortgage service. Seems the CIB would like to get its hands on the gig as it is “good” at providing information.

MABS which is a network of state funded independently governed companies is outraged and during the Minister’s recent stakeholder discussion forum two of its three representative arms spoke up in defence of its competencies which no-one questions when it comes to delivering on its mandate. Of course its mandate, competencies and resources are wholly insufficient to respond to the scope and scale of the service required. The CIB appears to think it has the where-with-all to do the job.

All consumer advocates both public sector and private sector flavours (bar a well-known self- promoting eejit who masquerades as one on his own forum) maintain that there has to be a total debt approach. They say that dealing with mortgage debt in isolation won’t do. It’s the case too that private sector solutions such as debt managers, debt advisers and the likes of New Beginnings haven’t the resources to provide a national solution.

So the ball is back in Joan’s court- and as usual the first problem she faces is an internecine squabble between two self-interested public service groups.

Interesting post, Monty. Are the CIB and MABS completely separate bodies? It does look like there are overlaps in their competencies. I notice you mentioned an 'overseer' role there.

[C. Flower]

Reform bankcruptcy law, or all the advice in the world won't make a bit of difference.

[monty cardigan]

@C Flower : Mabs is independent but tucked within the CIB remit through which state funding is channelled. There are many who consider Mabs captive of bankers who use the service as an add-on to their debt collection and enforcement processes.

I agree, until the LRC reforms are implemented (non-judicial and judicial) and an all debt approach adopted , banks won't play ball. All the advice, voluntary protocols and consumer protection codes are useless without laws that compel debt settlement. I would also add that the central bank cannot wear two hats - consumer protection will always play second fiddle to bank profitability.

[Cato]

Reform bankcruptcy law, or all the advice in the world won't make a bit of difference.

Bingo - properly reformed laws would strengthen the hand of the borrower in any negotiation with the banks. From experience, banks will negotiate and will choose the path that will lose them the least amount of money, but the field has to be re-balanced for this to happen with mortgages.

[Baron von Biffo]

Bingo - properly reformed laws would strengthen the hand of the borrower in any negotiation with the banks. From experience, banks will negotiate and will choose the path that will lose them the least amount of money, but the field has to be re-balanced for this to happen with mortgages.

Who will bear the cost of making it easier for people to walk away from their debts?

[Holly]

Who will bear the cost of making it easier for people to walk away from their debts?
How about the dopey lenders?

[Baron von Biffo]

How about the dopey lenders?

And who owns most of the dopey lenders?

[monty cardigan]

we have already capitalised the dopey lenders but they are hanging onto the cash probably using it to fund the haircut losses on loan asset sales rather than pass through losses to joe public how has and will be paying for the clean up for years to come. don't go all moral hazard moralist!

[palme]

Reform bankcruptcy law, or all the advice in the world won't make a bit of difference.

Let loose all those wealth creators who fell foul of the property boom so they can weave their magic again.

Eh, that was irony. Sadly I have to point that out.

JESUS WEPT.