Dáil Éireann Debate, Thursday - 14 December 2023
217. Deputy Paul Kehoe asked the Minister for Finance whether there is any mechanism to prevent a bank from selling a performing loan to a debt collecting agency; and if he will make a statement on the matter. [55876/23]
View answerThe transfer or sale of a creditor's benefits and rights under a credit agreement is a commercial decision for an individual firm. As Minister for Finance, I have no function or role in such decision-making matters by credit institutions or other mortgage entities.
However, there is a robust consumer protection framework in place in relation to credit agreements. This framework provides the same protections for consumers, regardless of the regulated entity with whom they are dealing, such as a bank, a retail credit firm or a credit servicing firm. These regulated entities must be authorised and supervised by the Central Bank of Ireland, and are subject to the full suite of relevant regulatory requirements and financial services legislation, including the Code of Conduct on Mortgage Arrears and the Consumer Protection Code.
As the independent regulator, the Central Bank has indicated that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times. In this context, any entity which is involved in the business of providing credit to consumers, or who subsequently services or acquires the legal title to the rights of the creditor in respect of a credit agreement entered into by a consumer, falls within the authorisation and regulatory scope of the Central Bank. The Central Bank advises that all entities authorised by it have to comply with all relevant requirements of financial services legislation. In addition, when a creditor's rights under a credit agreement are sold to another entity, the terms and conditions of that particular agreement remain in place.
If a consumer is not satisfied with how a regulated firm is dealing with them in relation to the handling of a mortgage or other debt, or if a customer believes that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated firm. If they are still not satisfied with the response from the regulated firm, they can refer the complaint to the statutory Financial Services and Pensions Ombudsman (FSPO). The FSPO can be contacted on 01 567 7000 or at info@fspo.ie.
