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

This section is no longer required. Section 3.11 of the consumer protection code provides that where a regulated entity intends to cease operating, merge with another entity or transfer all or part of its regulated activities to another regulated entity, it must: notify the Central Bank immediately; provide at least two months notice to affected customers to enable them to make alternative arrangements; 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 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.

Regulated entities, including loan owners, are obliged to follow the provisions of all Central Bank codes and regulations. The Department has conveyed its concerns to me that the proposed section would have unintended consequences. The Central Bank has copied letters to the committee which state that it expects that all affected customers are informed of both the term in their loan agreement which allows the loan to be sold and the identity and address of the proposed new owner at least two months in advance of the transfer and to inform the consumer of how continuity of service will be provided to him or her.