# Banks asking people to sign confidentiality agreements prior to restructuring



## Brendan Burgess (26 Jun 2013)

Some banks have apparently being asking customers to sign confidentiality agreements prior to even beginning negotiations on restructuring their mortgages.  Ciaran Lynch TD wrote to the Central Bank and got the following reply: (It's OCRd from a PDF, so apologies for the typos)



> [FONT=&quot]Mr Ciaran  Lynch  TD[/FONT]
> [FONT=&quot]29 St. Patrick's   Mills[/FONT]
> [FONT=&quot]Douglas[/FONT]
> [FONT=&quot]Cork.[/FONT]
> ...


----------



## Brendan Burgess (26 Jun 2013)

And a statement from Ciaran Lynch



> *BANKS CONFIDENTIALITY CLAUSES CAUSE CONCERN - LYNCH*​
> Ciarán Lynch T.D., Chair of the  Oireachtas Finance Committee, has expressed his concerns regarding the  use of confidentiality agreements by lenders, which may act to the  detriment of borrowers.
> “I am deeply concerned with the use  of confidentiality clauses by lenders as a prerequisite to any  discussion with customers. It amounts to a ‘sign before we talk’  provision, which is deeply worrying.
> “I have significant concerns  regarding the absence of consistency on this issue across different  lenders, with the result that not all distressed mortgage-holders are  being treated fairly. Any inconsistency can only serve to disadvantage  distressed borrowers, who are on the weaker end of the borrower-lender  relationship.
> ...


----------



## Bronte (27 Jun 2013)

_'however I still believe we need a full and complete explanation from the banks as to why these confidentiality agreements are needed'_




That's a good question.  The only reason is that banks don't want everybody to know they are doing deals as those that are currenly struggling but payign their mortgage could decide that if Johnny next door gets a deal of debt writedown and still lives in his home than why shouldn't he.   And he might decide to default.  Strategically  

Personally don't have a problem with confidentiality agreements, only problem is that I'd worry that ignorant borrowers who are stressed might sign a deal that was in no way beneifical, that it might appear so but was not and was only in the banks interest.  And the CB or whoever, well someone needs to be a consumer champion.  Maybe there shoudl be a rule that whetever deal is done has to be in the consumers interest and if it is not the borrower, has the right of say an independant review.


----------



## ang1170 (28 Jun 2013)

I think the more illuminating aspect of this correspondence is the revelation of the relationship between the banks and their so-called regulator. It's an absolute joke: 

"In [FONT=&quot]terms of the extent to which this is current practice, from the information which we have received from lenders to date, it would appear that not all of the covered banks are using confidentiality agreements. We are, however, still awaiting further information from some lenders, and would hope to receive all the information requested over the coming weeks."[/FONT]

Same old, same old: the central bank writes a letter to the bank and waits a few weeks "hoping" for a response. Are these guys for real? It's no wonder the Anglo folks treated them with contempt....


----------



## breakonthru (28 Jun 2013)

Why don't folk do what I did, sign the confidentiality agreement with their bank after cutting a deal - then- come on to AAM and detail exactly what deal was got, anonymously


----------



## Gerry Canning (28 Jun 2013)

breakonthru said:


> why don't folk do what i did, sign the confidentiality agreement with their bank after cutting a deal - then- come on to aam and detail exactly what deal was got, anonymously


 ...........................................................................................

Brilliant !!!!


----------



## Brendan Burgess (28 Jun 2013)

breakonthru said:


> Why don't folk do what I did, sign the confidentiality agreement with their bank after cutting a deal - then- come on to AAM and detail exactly what deal was got, anonymously



When were you asked to sign a confidentiality agreement? 

Was the offer the 3 year interest-only? 

As this was generally available, I doubt if ptsb mind it being discussed openly. 

Brendan


----------



## breakonthru (29 Jun 2013)

*Confidentiality Clause contained within new 3 Year Int Only Agreement*

Hi Brendan, from what I can recall there was a confidentiality clause in the agreement I signed and sent back to PTSB.


----------



## Palerider (29 Jun 2013)

Why do people think that debt write off is new..? I've been in the banking business 28 years before jumping ship back in the late 2000's to do other things, debt write off is an everyday part of banking business from the start of time.

I have succeeded in having more than one Bank agree a write down and yes subject to a confidentiality clause and so what, there is no mystery and no drama involved.

Do the best deal you can do and if you do not feel capable then get the best person you can to bat for you, logic wins almost every time.


----------

