Enterprise, Trade and Investment Minister Arlene Foster has called on the local banks to do more to help people in debt.
The Minister was addressing a lunch hosted by the Banking Code Standards Board, (BCSB) today in Belfast.
The BCSB is responsible for monitoring and enforcing compliance with the Banking and Business Banking Codes which are followed by banks and building societies in their dealings with personal and small business customers across the UK.
The codes cover those products and services that allow consumers to manage their daily financial needs – current accounts, personal loans and overdrafts, savings, card services and ATMs.
The new editions of the banking codes introduced earlier this year require banks to ‘strengthen credit assessment practices to enhance responsible lending’ and to provide ‘more help for customers who may be heading towards financial difficulties’.
Speaking at the BCSB lunch today, which was also attended by representatives from the Northern Ireland banks and building societies and consumer bodies, the Minister said: “I extend an invitation to our local banks jointly as an industry, or separately as individual companies, to play a role with us in addressing the problem of over-indebtedness.
“As Northern Ireland consumers face untold pressure on household budgets, I will be writing to each of the big four Northern Ireland banks to encourage them to engage with Government on this issue.”
The Minister continued: “Banks must proactively contact those customers whom they believe may be heading towards problems, based on the information they hold on them.
“The new code, which covers savings and current accounts and borrowing, except mortgages, still encourages people to talk to their bank about any financial concerns.”
Arlene Foster concluded: “I believe that now, more than ever, high street lenders must play their part. Local banks and building societies have a major role in assisting those clients who find themselves in a situation of debt.
“I want to continue to work with the high street lenders to support their personal and business customers who find themselves in financial difficulties.”
