Dáil Éireann Debate, Wednesday - 21 February 2018
91. Deputy Michael McGrath asked the Minister for Finance if a repossession action will be taken in the name of the unregulated loan owner or the appointed credit servicing firm in relation to a PDH mortgage acquired by an unregulated loan owner; and if he will make a statement on the matter. [8992/18]
Amharc ar fhreagraMost loan agreements include a clause that allows the original lender to sell the loan on to another firm. The Central Bank has no jurisdiction over unregulated third parties and therefore has no power to investigate the activities of such entities.
However, under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (“the 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 are firms who manage or administer loans on behalf of the unregulated firm. ‘Credit servicing’ includes all interactions with the consumer in respect of the loan, including:
- Notification of changes in interest rates or payments due;
- Collecting repayments on the loan;
- Managing complaints; and
- Assessing the consumer’s financial circumstances in cases of financial difficulties.
Under the 2015 Act, ‘credit servicing’ does not include taking such steps as may be necessary for the enforcement of a credit agreement.
