As the Deputy is no doubt aware the director of Consumer Affairs is independent in the performance of his functions, which include the enforcement of an extensive range of consumer protection legislation.
The function of the director in relation to mortgage intermediaries, which derive from section 116 of the Consumer Credit Act, 1996, is to authorise them and to subject them to general regulation. For the purposes of the Act, a mortgage intermediary means any person, other than a mortgage lender or credit institution, who in return for a commission, payment or consideration of any kind in relation to the credit transaction arranges or offers to arrange the provision of a housing loan by a mortgage lender.
By definition, the Act, which concerns the granting of credit, was never intended to regulate or safeguard sums of money which may be placed with such intermediaries. Indeed a mortgage intermediary should not be handling any moneys belonging to consumers.
I am informed by the director that to date no complaints have been received by him from any consumer claiming to have lost money handed over to the company, referred to by the Deputy.
The director has gone on to tell me that, on the basis of the information available to him from the Garda, it appears that the loss of funds by members of the public in this case do not arise from any matters regulated by the Consumer Credit Act but rather from matters proper to the Garda.
