Blog – David McCarthy – Galway Talks, 08/05/2014

galway-bayfmIssue:  New deal on Insolvency Service allows more people burdened with debt to look for write downs on their loans.

Comment:  Since the introduction of the Personal Insolvency legislation, there have been considerable problems, which were noted at the beginning.  In particular, the cost of proceeding through the process has excluded a lot of people from availing of it.  The Irish Mortgage Holders Organization have recently launched a new initiative whereby they will process applications through the accountancy firm Grant Thornton.  The service is free to those who cannot afford it, with the cost met by the banks that the borrower is dealing with.  This is a welcome development and hopefully will lead to more people availing of this process.

Question:  I have money on deposit with my bank and they keep contacting me looking to sell me one of their products.  Is there anything I can do to stop this?

Comment:  Unfortunately it appears that quite a number of bank customers are experiencing considerable sales pressure from bank staff.  This is due to the fact that banks are no longer making the kind of margin that they did on their lending and have resorted to selling products.

It is important for customers to resist this type of pressure and only make a rational/unbiased decision, if they proceed with any financial product. 

Issue:  Health Insurance Company launches a radical plan whereby you can build your own health policy.

Comment:  Unfortunately we have seen a dramatic reduction in the number of people covered by private medical insurance.  GloHealth have now launched a new product which will allow people to avail of a basic plan costing €514 per annum.  The interesting aspect to this cover is that you can then add on extras and thereby build your own plan.

Hopefully, this will not alone reduce the numbers leaving the private medical insurance system but also encourage others to return.