Dáil Éireann Debate, Thursday - 3 February 2022
230. Deputy Mairéad Farrell asked the Minister for Finance the consequences for the rights of consumers in cases in which their mortgage is sold as in the case of an agreement between banks (details supplied); and if a guarantee will be given that all rights will be maintained in cases in which a mortgage transfers to the acquiring party. [5595/22]
View answerThe Central Bank has advised that, where a mortgage loan is sold or transferred from one regulated entity to another regulated entity, the rights and protections that were available to borrowers prior to the transaction continue to be in place with the new owner.
Accordingly, consumers maintain the regulatory protections which are available under the various Central Bank statutory Codes of Conduct, such as the Consumer Protection Code 2012 ('the Code') and the Code of Conduct on Mortgage Arrears 2013.
Furthermore, in the event of a regulated entity withdrawing from the Irish market, the Central Bank also advises that the withdrawal must be undertaken in accordance with the provisions of Irish financial services legislation, including the Central Bank’s codes of conduct. In particular, under Provision 3.11 of the Consumer Protection Code, a regulated firm that intends to cease operating, merge with another, or to transfer all or part of its regulated activities to another regulated firm, must:
- provide affected consumers with at least two months’ notice to enable them to make alternative arrangements if they so wish;
- ensure all outstanding business is properly completed prior to any transfer, merger or cessation of operations; or, in the case of a transfer or merger, inform customers as to how continuity of service will be provided following a transfer or merger; and
- in the case of a merger or transfer of regulated activities, inform customers that their details are being transferred to the other regulated entity, if that is the case.
The Deputy may also wish to note that, on 25 June 2021, the Central Bank issued an industry letter regarding its consumer protection expectations in the changing retail banking landscape. These expectations reflect its assessment of possible risks to consumers during periods of change and reinforce previously communicated expectations, based on its experience of prior events. The Central Bank expects that, by clearly outlining its expectations, this will inform regulated entities’ actions and decisions to ensure that customers’ interests are protected and potential risks are mitigated.
