NI Business Has Role In Debt Recovery: Foster

There has been a high level call for the business community to play its part in beating the credit crunch.

Northern Ireland Enterprise Minister Arlene Foster has said that local banks can do more to help people who are in debt.

The Minister was speaking at a lunch hosted by the Banking Code Standards Board, which enforces the banking and business banking codes set up to regulate banks and building societies' dealings with personal and small business customers.

The codes cover current accounts, personal loans and overdrafts, savings, card services and ATMs and earlier this year it required banks to 'lend more responsibly' and 'help customers facing financial difficulties'.

Ms Foster said: "I extend an invitation to our local banks jointly as an industry, or separately as individual companies, to play a role with us in addressing the problem of over-indebtedness.

"As Northern Ireland consumers face untold pressure on household budgets, I will be writing to each of the big four Northern Ireland banks to encourage them to engage with government on this issue."

She said banks should contact customers who were heading into financial difficulties, based on the information the banks held.

"The new code, which covers savings and current accounts and borrowing, except mortgages, still encourages people to talk to their bank about any financial concerns.

"I believe that now, more than ever, high street lenders must play their part. Local banks and building societies have a major role in assisting those clients who find themselves in a situation of debt," she said, noting that she wasanted to continue to work with the high street lenders "to support their personal and business customers who find themselves in financial difficulties".

(BMcC)