At present, the particular referenced firm is not regulated by the Central Bank. Unregulated entities that have acquired mortgage loan books are not subject to regulation by the Central Bank and are therefore not subject to the provisions of its Codes, such as the CCMA - though many such firms have stated that they will voluntarily comply with the CCMA.
However, borrowers whose loans are sold to unregulated entities will be protected by the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 when it is enacted. The purpose of the Bill is to ensure that consumers retain the protections they had prior to the sale of their loan. This Bill will require entities dealing with the consumer to be authorised by the Central Bank and subject to its Codes of Conduct. Dealing with the consumer is credit servicing and the definition of credit servicing is broad. Owners of loan books who deal directly with consumers, that is, who are servicing their own loan books, will be regulated. Otherwise they can have the loan book serviced by a regulated credit servicing firm.
The Bill was published in January and second stage of the Bill was taken in the Dáil on 4 February. Since then, my officials have been in contact with the Central Bank and with the Office of the Attorney General to further progress the legislation. The Bill will continue its progress through the legislative process and I look forward to further discussion of the Bill at Committee Stage which has been set for 27 May.
With regard to contacting such firms, correspondence may be sent by registered post to a PO Box, although it will not be signed for. However, there will be a record that the post was delivered to the P.O. Box. If the customer is experiencing difficulty contacting the firm by post, it may be of benefit to contact the firm by phone and discuss the particular circumstances with them.
