Dáil Éireann Debate, Wednesday - 21 February 2018
89. Deputy Michael McGrath asked the Minister for Finance the reason unregulated loan owners such as private equity funds should not be brought fully within the ambit of the Central Bank regulation; and if he will make a statement on the matter. [8990/18]
Amharc ar fhreagraThe Government introduced the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 to regulate Credit Servicing Firms. The Central Bank regulates credit servicing firms who act as agents for the loan owners because it is the credit servicing firms that interact with the customers.
The Department's early position was that loan owners should be regulated but the consultation process undertaken at the time made it clear that credit servicing, as the customer-facing activity, was the appropriate activity to regulate and this legislation achieves this.
Credit Servicing Firms must comply with all relevant requirements of financial services legislation, including the regulatory requirements set out in the Central Bank’s statutory Codes of Conduct and Regulations.
The legislation ensures that borrowers whose loans are sold on to third parties maintain the same regulatory consumer protections they had prior to the sale. These issues are kept under regular review in my department.
