I propose to take Questions Nos. 176, and 192 to 194, inclusive, together.
Where relevant, Irish financial services law (including the Consumer Protection Code 2012, the Code of Conduct on Mortgage Arrears and the Consumer Credit Act 1995) applies to the regulated activities of regulated entities. The CCMA applies to the mortgage lending activities of all regulated entities, except credit unions, operating in the State, including, inter alia, a financial services provider authorised, registered or licenced in another EU or EEA Member State and which has provided, or is providing, mortgage lending activities in the State.
Any agent acting on behalf of a regulated financial service provider i.e. where an activity is outsourced, must comply with the requirements of Irish financial services law (including the CCMA) and failure to do so may result in the Central Bank imposing penalties on the regulated financial services provider concerned.
By virtue of an exemption in Part V of the Central Bank Act 1997, an unregulated entity to whom a cash loan is transferred by a regulated entity is not subject to Central Bank supervision. I am informed by the Central Bank that Bank of Scotland plc is authorised in the UK and is providing services into Ireland on a cross border basis. Tanager Ltd is not a regulated financial service provider.
The provision of debt factoring services is not an activity which is regulated by the Central Bank of Ireland and therefore not subject to supervision by the Central Bank. I would accept that consumers whose mortgage loans have been sold to unregulated entities are in a different position to other consumers whose loans are provided by regulated financial institutions. I do not have a list of the financial institutions who purchased loan books and who are or are not voluntarily adhering to the Code of Conduct.
Consumer protection in this area is an issue which has been the subject of discussion between my officials and the Central Bank and National Consumer Agency but this is an area of some complexity. The main difficulties are how to enforce consumer protection and consumer rights while respecting the rights of individual financial institutions to dispose of loan books and the appropriate level of regulation/supervision that should apply to institutions which wish to purchase such loan books. Securitisation of loan books by financial institutions is also closely connected to this issue. I will keep this area under review and have asked my officials to continue their assessment of the issue.
