Dáil Éireann Debate, Tuesday - 15 July 2014
198. Deputy Dominic Hannigan asked the Minister for Finance if he has had any communication with a company (details supplied) regarding its purchase of a loan book from Friends First and its ability to honour loan agreements in place between Friends First and its borrowers prior to the loan book being sold; and if he will make a statement on the matter. [31144/14]
View answerI can confirm to the Deputy that I have had no communications with the company mentioned by him.
Friends First Finance Limited is authorised under Section 31 of the Central Bank Act, 1997 (as amended) to operate as a retail credit firm.
As a regulated financial entity, it must comply with the Central Bank's Consumer Protection Code 2012. In this context, the Code requires that, where a regulated entity intends to cease operating, merge with another, or to transfer all or part of its regulated activities to another regulated entity it must:
- notify the Central Bank immediately;
- provide at least two months' notice to affected consumers to enable them to make alternative arrangements;
- ensure all outstanding business is properly completed prior to the transfer, merger or cessation of operations or, alternatively in the case of a transfer or merger, inform the consumer of how continuity of service will be provided following the transfer or merger; and
- in the case of a merger or transfer of regulated activities, inform the consumer that their details are being transferred to the other regulated entity, if that is the case.
The Deputy will be aware that the Government intends to bring forward legislation to ensure that, where a regulated financial entity sells its loan book to an unregulated entity, the protections afforded under the Central Bank codes will continue to apply. My officials are working with the Office of the Attorney General and the Central Bank on the draft 'Consumer Protection on the Sale of Loan Books Bill'.
