Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

This is an important issue. There is a gap in the existing legislation around credit servicing. Many of the vulture funds that bought loan books are not directly regulated in Ireland. However, they must appoint an intermediary, which is regulated, that is to say, a credit servicing firm. Pepper is probably the best-known example. The legislation could only apply to regulated entities and, therefore, it would apply to the intermediary. All contact from a customer in respect of a mortgage is with the intermediary. I have argued that the actual owners of the loans should be regulated and I gather Sinn Féin holds a similar view. Currently, they are not and I believe that is a deficiency. This Bill will apply to regulated entities and, therefore, it will apply to the credit servicing firm with which the customer has all contact.

Another body of work remains to be done to bring all the funds within the ambit of Central Bank regulation. Currently, they are not. I have argued that the owners of the loans make all the ultimate decisions on those loans. If there is a decision on interest rate policy, accepting or restructuring of a mortgage or a decision about going down the enforcement and legal routes, then the decision is made not by the intermediary but by the owner of the loan. However, currently, the owners are not required to be regulated under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015. That gap has to be bridged first before we can bring the funds into this legislation. The legislation does cover the credit servicing firm, which is an intermediary.