| IRELAND – ECRC member FLAC lanches report highlighting voice of debtors, Government Amends Bill 2009 on Enforcement of Court Order, and National Steering Group on Financial Education produces report. |
Free Legal Advice Centres (FLAC) has launched its report on debt enforcement. FLAC Senior Policy Researcher Paul Joyce has been one of the founding members of the ECRC and committed supporter of promoting responsible credit. FLAC unveiled its latest report on 6 July, calling for radical overhaul of Ireland's Dickensian laws on debt enforcement. The report, launched by singer Mary Coughlan, centres around the voices of debtors who have been through the Irish legal system, some of whom have ended up in prison. It makes a range of proposals on how the Irish system might be made more efficient as well as compliant with human rights standards, suggesting an alternative to the current system of instalment and committals orders.
You can download the report at the link below.
“TO NO ONE’S CREDIT?” - A study of the debtor’s experience of Instalment and Committal Orders in the Irish legal system
During 2006, FLAC carried out research with clients of the Money Advice and Budgeting Service (MABS) on their experiences when debt enforcement procedures were invoked against them. The ensuing report, “To No One’s Credit?” explores the debt enforcement legal system in the Republic of Ireland in the context of the personal experiences documented by the debtors taking part in the interviews. It follows FLAC’s 2003 report “An End based on Means?” which explored how the legal system treated uncontested consumer debt cases. Arising from the findings of the research, “To No One’s Credit?” proposes a number of recommendations to the debt enforcement system; such recommendations include the improvement of access to information and assistance for debtors, the reform of the debt enforcement by Instalment Order system and the removal of imprisonment in debt cases.
LEGAL ADVISERS URGE NEW LAW TO BAN 'IRRESPONSIBLE LENDING'
By Dearbhail McDonald Legal Editor, Monday July 06 2009
A NEW offence of "irresponsible lending" should be introduced to protect vulnerable debtors, according to a major report on debt and the courts.
The Free Legal Advice Centres (FLAC) organisation has called on the Government to consider a South African-style national credit act which would ban irresponsible lending.
Two years ago the South African Government created an agency to implement new consumer laws in a bid to curb reckless lending and reduce over-indebtedness.
FLAC, which today reveals that only one in five debtors attend court hearings designed to assess their ability to repay debts, said the notion is likely to be unpopular -- even among borrowers -- as it could lead to credit restrictions.
But the organisation, which assists many borrowers who are unemployed or in receipt of social welfare payments, said a new law would "concentrate the collective mind of the credit industry when lending money in the future".
Last year 276 people were sent to jail for an average of three weeks for non-payment of civil debts.
But the Government has been forced to reform Ireland's debtors law after the High Court recently struck down a key section of Ireland's enforcement of court orders law as unconstitutional.
FLAC has published details of a survey of debtors which reveals that three out of four people facing imprisonment did not understand the legal documentation served on them, and did not understand their options or the consequences at all stages of proceedings.
And only one in three who managed to engage with their problem at a court level had any contact with court staff or officials.
Terror
Debtors interviewed by the FLAC spoke of their "terror" of the postman calling with more letters. They reported depression, loss of self-esteem, stress, nightmares, flashbacks, and having to resort to medication to cope.
In one case, a debtor was sent to prison over a debt of €1,700. The cost to the taxpayer for the three month sentence was €20,000.
FLAC has suggested a range of measures including an alternative debt enforcement system. It wants appropriate financial and legal information to be available to debtors as early as possible in the process.
The FLAC survey revealed that a very high number of debtors, some 79pc, had dependent children.
Half of debtors tried to hide knowledge of court proceedings from their children, partners or both.
Most people imprisoned were aged between 40 and 50, dispelling the myth that the most indebted people in Ireland are in a younger age bracket.
A significant majority of debtors were unemployed or in receipt of some form of social welfare payment at the time debt proceedings were issued against them.
Many had previously been handling their debts, but their status was changed by common debt triggers such as illness, unemployment, business failure and relationship breakdown. More than half cited illness as the cause of their indebtedness.
------------------
Below are links to a recent amendment in Ireland and a message from ECRC supporter and longstanding debt advice expert formerly at MABS Ireland Liam Edwards:
It is obvious that the Department of Justice had to be dragged kicking and screaming to introduce this legislation. I know that the Department has no stomach for this and has no empathy with those suffering under the present legislation. This is again evident from the Press Release below It is used sparingly by the courts, even prior to the recent High Court judgment. However its value is its persuasive power – people tend to settle up when they know they are at risk of prison. Well whatdya know. This says it all. The irony of it is that the Irish Banking Federation has been lobbying successive Ministers for Justice to amend the legislation. I’ll say no more except “an Irish solution to an Irish problem”.
http://www.irishexaminer.com/ireland/ahern-urged-to-bring-fairness-to-debt-collection-95215.html
Enforcement of Court Orders (Amendment) Bill 2009 [Seanad] as initiated and Explanatory Memorandum
http://www.oireachtas.ie/documents/bills28/bills/2009/4709/B4709S.pdf
http://www.irishexaminer.com/home/state-urged-to-end-jail-for-failure-to-repay-debts-95712.html
http://www.irishexaminer.com/opinion/editorial/debt-legislation--imprisoning-debtors-helps-no-one-95726.html
Government Approves Enforcement of Court Orders (Amendment) Bill 2009
http://www.justice.ie/en/JELR/Pages/Government%20Approves%20Enforcement%20of%20Court%20Orders%20(Amendment)%20Bill%202009
New law to allow courts to jail debtors who refuse to pay
http://www.irishtimes.com/newspaper/ireland/2009/0627/1224249654046.html
http://www.irishtimes.com/newspaper/frontpage/2009/0627/1224249656685.html
---------------
Report of the National Steering Group on Financial Education – „Improving Financial Capability – a multi-stakeholder approach”
EXECUTIVE SUMMARY
In recent years, awareness of the need to improve financial capability has been gaining momentum both internationally
and domestically. In December 2006 the Consumer Director of the Financial Regulator convened the National Steering
Group on Financial Education (Steering Group), which is comprised of members from a wide range of stakeholders with
an interest or role in education and personal finance.
Since its establishment, the Steering Group has worked to examine current practice both domestically and internationally,
to define its long-term vision for a financially capable Ireland, and to propose and recommend further individual and
collective actions to enhance financial capability in Ireland. This work has been achieved by way of working groups
drawn from member organisations and by individual projects managed by the Financial Regulator in consultation with
key stakeholders.
The development of personal finance education is in its infancy in many jurisdictions. Few countries can boast a national
strategic approach and even fewer have personal finance education comprehensively covered in school curricula.
Notwithstanding this there seems to be a growing recognition internationally that financial capability has increasingly
become a key life skill that brings benefits to individuals and to society. This can be seen specifically in the EU with
the establishment of an Expert Group on Financial Education. Those countries that have more developed financial
capability programmes are those where a coherent national strategy has been established and funded (through public
money, private money or a combination). It is also key that the strategy is supported by Government policy and that
stakeholder interest is harnessed.
In Ireland there are many stakeholders, both public and private sector, involved in the development of tools, materials
and programmes designed to raise some aspect of financial capability. These range from information-based services
to free schools materials. Although there are some elements of personal finance on the second level curriculum its
coverage is not comprehensive. It is fair to say that the development of programmes to date has been ad hoc and based
on the remits and priorities of individual organisations rather than by overall design. We hope that the existence of
the audit of education resources on www.financialcapability.ie will assist in identifying gaps in provision, help to
prevent duplication and provide a resource for those looking for teaching materials in this area. The audit does not seek
to endorse programmes listed and the Steering Group recognises the need for robust assessment of the effectiveness
of personal finance education programmes.
The development of the Financial Competency Framework is a key piece of work for the Steering Group. For the first
time there is one document that defines the elements that add up to make someone financially capable. It covers not just
knowledge but other skills such as the ability to seek information and ask the right questions. It also deals with the social
and personal issues around money, which are key to understanding why and how we spend.
In parallel with this we have gained a greater understanding of where we are as a nation with regard to financial capability.
In March 2009 the Financial Regulator published Ireland’s first Financial Capability Study.
The Study establishes a baseline measure of financial capability in Ireland and is modelled on a similar study conducted
in the UK and published in 2006. While the fieldwork for the Irish study was conducted in a more benign environment
during 2007 and 2008, the findings in relation to behaviour are still relevant. The results of the Study will assist in
segmenting the population and suggesting priorities for particular areas of capability. Allied with this the Steering
Group specifically looked at vulnerable groups and has created a matrix1 that maps disadvantaged groups against those
organisations currently providing services to them. This recognises that reaching vulnerable groups is more effective
through existing channels and local expertise.
We believe that the final chapter, outlining the commitments and recommendations of the Steering Group, is the
most pertinent. Taken together, the commitments and recommendations form the next steps in the process towards
achieving the Steering Group’s long-term vision for a financially capable Ireland. The commitments are made either
on an individual organisational basis or through a collaborative approach, while the recommendations are designed to
help raise levels of financial capability by fostering the development and delivery of a comprehensive personal finance
education strategy for Ireland. We believe that the commitments and recommendations create a robust joint action
plan and future direction for personal finance education by drawing on the diverse interests, views and experience of
the organisations represented on the Steering Group.
Finally, where possible we have tried to leverage existing channels, expertise and resources. However the success of
any national strategy does depend very much on support from policy makers and on funding. The Steering Group is
encouraged by the inclusion of funding for financial education in the Recapitalisation Scheme for the two main banks
and looks forward to engaging further with Government on foot of this report. |
| ID: |
43416 |
| Author(s): |
iff |
| Publication date: |
07/07/09 |
|
|
|
|
| | |
Created: 07/07/09. Last changed: 07/07/09.
Information concerning property and copy right of the content will be given by the Institut For Financial Services (IFF) on demand. A lack of explicit information on this web site does not imply any right for free usage of any content. |
