Dáil Éireann Debate, Wednesday - 19 April 2023
40. Deputy Ged Nash asked the Minister for Finance the steps he is taking to ensure that the rights of those who have mortgages taken over by credit servicing firms under the terms of the Credit Services Directive once it is transposed into Irish law are enhanced, not diminished; and if he will make a statement on the matter. [18401/23]
View answerThe strengthening of borrowers’ rights across the EU is one of the key purposes of the Credit Services Directive.
The Credit Servicers Directive deals with the secondary market for non-performing loans. It lays down a common EU framework for the transfer and management of bank-originated non-performing loans which are transferred or sold after 29 December 2023. It provides for an EU-wide regulatory arrangement for both the purchasers and servicers of such credit agreements and in particular it provides that a new authorisation framework for ‘credit servicers’ to be overseen by national competent authorities (which in the case of Ireland will be the Central Bank of Ireland) and such authorised entities will have the right to passport credit servicing activities across the EU based on a home Member State authorisation.
The Directive also makes certain amendments to the Consumer Credit Directive (2008) and the Mortgage Credit Directive (2014) to impose obligations on creditors to have adequate policies and procedures so that they adopt reasonable forbearance procedures before initiating default enforcement proceedings.
Officials in my Department are working with the Office of the Attorney General to transpose the Directive, as EU Member States are required to adopt and publish the national measures to transpose the provisions of the Directive by 29 December 2023.
The public consultation period closed on 8 March 2023. The submissions received in response to the public consultation will be taken into consideration when deciding on the national discretions contained within the Credit Servicers Directive and when transposing the provisions of that Directive into Irish law.
More generally, the Central Bank has indicated on many occasions that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times.
Furthermore, if a consumer is not satisfied with how a regulated firm is dealing with him/her in relation to the handling of his/her mortgage, or a consumer believes that the regulated firm is not following the requirements of the Central Bank’s codes (including the Code of Conduct on Mortgage Arrears which applies to any loan that is secured on a primary residence) and regulations or other financial services law, he/she should make a complaint directly to the regulated firm.
If the consumer is still not satisfied with the response from the regulated firm, he/she can refer the complaint to the statutory Financial Services and Pensions Ombudsman (FSPO).
