Finian McGrath
Ceist:266. Deputy Finian McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding mortgages. [28488/15]
Amharc ar fhreagraTuesday, 14 July 2015
Ceisteanna (266)
Freagraí scríofa
In my response to parliamentary question no. 236, which was for written answer on 30th June 2015, the reference to the Commission of Investigation related to the perceived conflict of interest which was outlined in the question asked and was not in the context of the sale of loan assets as per the details supplied to this current question.
In relation to loan assets purchased by third party purchasers, I am unable to comment on the intentions and/or the subsequent actions of these third party purchasers once the loan assets have been sold.
However, as you may be aware, borrowers whose loans are sold to unregulated entities are now protected by the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015, which was enacted earlier this month. The purpose of the Act is to ensure that consumers retain the protections they had prior to the sale of their loan. This Act will require entities dealing with the consumer to be authorised by the Central Bank and subject to its Codes of Conduct. Owners of loan books who deal directly with consumers, that is, who are servicing their own loan books, will be regulated.
All consumer and relevant SME loans sold by regulated financial institutions are covered by this Act. Borrowers have therefore been restored to the protections they previously had, such as the Code of Conduct on Mortgage Arrears (CCMA), the Consumer Protection Code and the Code of Conduct for Business Lending to Small and Medium Enterprises. Borrowers who previously had access to the Financial Services Ombudsman have also had this right restored by this legislation.
Therefore the borrower concerned may bring her complaint to the Financial Services Ombudsman if she is unable to resolve the complaint to her satisfaction with the institution concerned. The Financial Services Ombudsman was set up to adjudicate on unresolved disputes between complainants and financial service providers in an independent and impartial manner.