Bulletin on key trends in operation of Code of Conduct on Mortgage Arrears

31 May 2016 Press Release

View Consumer Protection Bulletin Edition 3 – May 2016

The Central Bank of Ireland’s third Consumer Protection Bulletin, published today (31 May 2016), gives an overview of data relating to the operation of certain aspects of the statutory Code of Conduct on Mortgage Arrears (CCMA) over the two-year period, H1-2014 to H2-2015.1

The bulletin outlines the application of the CCMA and the progress of borrowers in or facing arrears through the Code’s Mortgage Arrears Resolution Process (MARP).

The Bulletin highlights several key trends, including:

  • Over the period H1-2014 to H2-2015, 163,962 borrowers the reporting institutions completed the MARP.
  • Of those borrowers who completed the MARP, the percentage who were offered an alternative repayment arrangement (ARA) has ranged between 89% in H1-2014 and 87% in H2-2015.
  • From H1-2014 to H2-2015, between 91% and 94% of ARAs offered by the lenders were accepted by the borrower.3
  • The proportion of appeals relating to an offer of an ARA, or a lender’s decision not to offer an ARA, that were upheld/partially upheld in favour of the borrower ranged between 33% in H1-2014 and 23% in H2-2015.4
  • The proportion of appeals against being classified as not co-operating that were upheld/partially upheld in favour of the borrower ranged between 31% in H1-2014 and 39% in H2-2015.


About the data

These Consumer Protection Bulletins, covering different aspects of the market, have been developed as part of a commitment (first outlined in the Consumer Protection Outlook Report, 2015) to gather and monitor market intelligence and data returns from regulated firms. This data provides the Consumer Protection Directorate with insights into existing and emerging consumer issues and complements statistical analysis developed elsewhere in the Central Bank. However, the reporting population and methodology can differ from other Central Bank public reports.

The data from the Consumer Protection Bulletin on the CCMA was collated from selected principal credit institutions offering personal residential mortgages. The reporting firms were selected on the basis of representation of the market and the data relates to personal consumers, as defined in the Consumer Protection Code 2012, resident in the State only.

About the CCMA

The Code of Conduct on Mortgage Arrears (“CCMA”) is a statutory Code issued under Section 117 of the Central Bank Act, 1989 and sets out how mortgage lenders must treat borrowers in or facing mortgage arrears, with due regard to the fact that each case of mortgage arrears is unique and needs to be considered on its own merits. The CCMA applies also to credit servicing firms. The CCMA sets out the framework that lenders and credit servicing firms must use when dealing with borrowers in or facing mortgage arrears. All such cases must be handled sympathetically and positively by the lender, with the objective at all times of assisting the borrower to meet his/her mortgage obligations.


1  H1-2014 to H2-2015- ‘H1’ refers to the first half of calendar year, i.e. 1 January until 31 June. ‘H2’ refers to second half, i.e. 1 July until 31 December.

2 As per definition in the CCMA; “Borrower” includes all parties named on the mortgage loan account.

This excludes those cases where the borrower had yet to decide on the offer of an ARA within the reporting period.

4 This excludes those appeals that were yet to be considered and adjudicated on within the reporting period.