Dáil Éireann Debate, Friday - 7 September 2018
141. Deputy Catherine Murphy asked the Minister for Finance the way in which or the scenarios in which he may intervene in the sale of a portfolio (details supplied) to a company; and if he will make a statement on the matter. [36325/18]
View answerAs the Deputy will be aware, the Minister for Finance cannot stop loan sales, even by the banks in which the State has a shareholding. These decisions are the responsibility of the board and management of the banks which must be run on an independent and commercial basis. The banks’ independence is protected by Relationship Frameworks which are legally binding documents which I, as Minister, cannot change unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market.
The PTSB Relationship Framework can be found at the following link:
http://www.finance.gov.ie/wp-content/uploads/2017/07/PTSB-Relationship-Framework-April-2015.pdf
Although the PTSB loan sale was necessary, I wish to highlight that I have commented on a number of occasions that the protections for borrowers in place before the sale remain unchanged. In this regard, it is important to note that there are no changes to the rights of a borrower whose loan is sold by a bank. All terms and conditions attached to their mortgage contract remain in place. In addition, Start Mortgages, the purchaser of the PTSB loan book, is a retail credit firm regulated by the Central Bank of Ireland since 2008.
When dealing with borrowers, retail credit firms are bound by the same regulations that currently apply to PTSB. Like PTSB, they are required to comply with the Consumer Protection Code (CPC) and the Code of Conduct for Mortgage Arrears (CCMA) when dealing with borrowers who are in arrears
I should also highlight that regardless of the protections that are currently in place for mortgage holders, I have confirmed that I am prepared to engage with Deputies from other parties in an effort to see if these protections can be strengthened further in a sensible manner. This commitment has been demonstrated recently by the Government’s support for the Bill introduced by Deputy Michael McGrath, T.D., which seeks to regulate the purchasers of mortgage loans.
In addition, earlier this year I asked the Central Bank to carry out a review of the CCMA to ensure it remains as effective as possible. I have asked for the report to be completed as soon as is practicable. The Central Bank has stated that it is their intention to deliver the report by the end of September 2018. If as a result of this review, the CCMA requires amendment, a full public consultation process would be required in line with normal guidelines.
