FINANCIAL REGULATOR MUST ADDRESS INTEREST RATE AND CHARGE HIKES – BRYAN

Home
Uncategorized
FINANCIAL REGULATOR MUST ADDRESS INTEREST RATE AND CHARGE HIKES - BRYAN
25 Nov 2011

FINANCIAL REGULATOR MUST ADDRESS INTEREST RATE AND CHARGE HIKES – BRYAN

Uncategorized


 IFA Press Release
<div align=”center” style=”text-align:center”>Issued by the National Press Office, The Irish Farmers’ Association
<div align=”center” style=”text-align:center”>www.ifa.ie
<div style=”text-indent:36.0pt”> 
<div align=”right” style=”text-align:right”>Friday November 25 2011
<div align=”right” style=”text-align:right”> 
<div align=”center” style=”text-align:center”><b><font size=”4″><span style=”font-size:
14.0pt;Arial Narrow”,”sans-serif””>FINANCIAL REGULATOR MUST ADDRESS INTEREST RATE AND CHARGE HIKES – BRYAN</span></font></b>
<div style=”text-align:justify”> 
<div style=”text-align:justify”>IFA President John Bryan has said that the Financial Regulator must take immediate action to investigate the actions of the banks in relation to their dealings with farm and other small businesses, in particular their hikes in interest rates and charges.
<div style=”text-align:justify”> 
<div style=”text-align:justify”>Mr Bryan was speaking after a meeting with officials of the Financial Regulator’s office in which he expressed the concerns and anger of farmers at the behaviour of the banks, which are relentlessly increasing costs for farmer customers through changes to existing loan arrangements, application of charges and fees, and increased costs of security.
<div style=”text-align:justify”> 
<div style=”text-align:justify”>John Bryan said, “The viability of farm and other small businesses is being put under huge pressure by the actions of the banks, which are imposing additional costs on customers who are fully compliant and repaying their debts as agreed. The silence of the Financial Regulator on this issue is unacceptable.”
<div style=”text-align:justify”> 
<div style=”text-align:justify”>“I am calling on the Financial Regulator to investigate these practices, ensure that businesses are being fairly treated and provide assurances to farmer customers that competitive rates are being applied. There is a lack of transparency in the pricing of loans and charges, which is creating uncertainty for businesses and failing farm businesses, whose investment and expansion is vital to the recovery of the economy.”
<div style=”text-align:justify”> 
<div style=”text-align:justify”>He continued, “The reality is that we do not have a functioning banking system at present. With the lack of competition in the banking sector in Ireland, and the high costs of providing security to new lenders, there are almost no options for farmer customers to move between banks in response to price rises. The additional costs being borne by customers are putting pressure on viability, deterring investment and overall undermining the competitiveness of the agriculture sector.
<div style=”text-align:justify”> 
<div style=”text-align:justify”>IFA Farm Business Chairman, James Kane, also pointed out that farmers are very annoyed and upset by the behaviour of some third parties engaged by the financial institutions. He said, “IFA has worked with the Financial Regulator’s office to put together a Code of Conduct for financial institutions when dealing with arrears. However, there have been a growing number of cases where the terms of the Code are being ignored.  This is unacceptable and the Regulator must take immediate steps to ensure that financial institutions work with customers in arrears, ensure that they are fully informed of any steps that are being taken and take responsibility for the actions of any third parties engaged.”

Copyright 2015 © - The Irish Farmers Association - Web Design by Big Dog, Dublin