Dáil Éireann Debate, Wednesday - 19 December 2018
133. Deputy Michael McGrath asked the Minister for Finance if consideration has been given to placing the code of practice on the transfer of mortgages on a statutory footing; and if he will make a statement on the matter. [53747/18]
Amharc ar fhreagraThe Code of Practice on the Transfer of Mortgages was introduced in 1991. As the Deputy will be aware, it is a voluntary code.
That said, the enactment of the Consumer Protection (Regulation of Credit Servicing Firms) 2015 means that the protections which a borrower had before a loan was sold were not lost on the sale. Credit servicing firms are now regulated entities and are required as a matter of law to comply with the Central Bank Codes.
Of particular relevance, is paragraph 3.11 of the Consumer Protection Code which provides:
"Where a regulated entity intends to cease operating, merge with another, or to transfer all or part of its regulated activities to another regulated entity it must:
a) notify the Central Bank immediately;
b) provide at least two months' notice to affected consumers to enable them to make alternative arrangements;
c) ensure all outstanding business is properly completed prior to the transfer, merger or cessation of operations or, alternatively in the case of a transfer or merger, inform the consumer of how continuity of service will be provided following the transfer or merger; and
d) in the case of a merger or transfer of regulated activities, inform the consumer that their details are being transferred to the other regulated entity, if that is the case."
Therefore, consumers are fully protected and I have no plans to put this Code on a statutory basis at present.
