Tuesday, 11 March 2014

Ceisteanna (86)

Pearse Doherty


86. Deputy Pearse Doherty asked the Minister for Finance if he has sought the legal status of the formal agreements with unregulated bodies which had purchased loan books and ascertained whether they are enforceable under contract law; and if he will make a statement on the matter. [11773/14]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

In relation to agreements or commitments given by these unregulated bodies in respect of their purchase of loan books, I understand that such agreements or commitments would not generally give rise to an obligation which is enforceable by the mortgagor. The terms of a contract can generally be enforced only by the parties to that contract.

There are some circumstances in which such agreements or undertakings can be enforced by a party not privy to the contract, particularly where that party has acted in reliance on the commitment, but such circumstances are unlikely to apply in most cases. For this reason I have asked my officials to explore the possibility of legislating to address the situation of such borrowers in consultation with the Central Bank and the Office of the Attorney General.