I have been informed by the Central Bank of Ireland (the Central Bank), that they have no jurisdiction over unregulated third parties and therefore it has no power to investigate the activities of such entities that have acquired distressed loans and mortgages from banks and building societies or to introduce any code of conduct applicable to such entities.
However, under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (2015 Act), if a firm who bought loans from an original lender is unregulated, then the loans must be serviced by a Credit Servicing Firm who is authorised and regulated by the Central Bank.
Credit servicing firms must comply with all relevant requirements of financial services legislation, including the regulatory requirements set out in the Central Bank’s existing codes of conduct and Regulations, i.e., the Consumer Protection Code 2012, the Code of Conduct for Mortgage Arrears 2013 and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Small and Medium-Sized Enterprises) Regulations 2015 (SME Regulations), including the arrears handling requirements. Credit servicing firms must also comply with Fitness and Probity Standards (including minimum competency requirements).
