THE CENTRAL BANK ISSUES BANKS WITH NEW RULES ON CONTACTING CUSTOMERS IN ARREARS: The Central Bank has revised the contact that is permitted between banks and customers in arrears. Essentially the bank is permitted to contact a customer 3 times per month, which can be done by phone/email/letter or a meeting. In relation to unsolicited business, a bank may only do this after all other attempts to contact a customer has failed. In addition they also must provide the customer with the option to meet in their office.
NAMA LAUNCHES PILOT SCHEME TO ENCOURAGE HOUSE SALES: NAMA has just launched a Pilot Scheme whereby they are selling 115 properties situated in Dublin, Cork and Meath. This is an innovative scheme whereby 80% of the purchase price is paid to NAMA upfront with the other 20% retained and only paid after 5 years. If on the 5th anniversary the value of the property has not changed or increased, then the 20% is paid directly to NAMA. However, if there is a fall in price below 20% then those monies are not payable.
LISTENERS QUESTION: I have funds on deposit and I am worried that deposit rates are going to fall further? What is your opinion on this and what alternatives do I have. ANSWER: Yes, you are correct. Deposit rates are likely to fall throughout this year. You have the option of fixing for a period and I would recommend that you consider the option for 6 or 12 months. Alternatively there are a variety of capital guaranteed bonds available over a period of 3 to 4 years which could provide the opportunity for a greater return.