Bernard Durkan (Kildare North, Fine Gael) | Oireachtas source

Other speakers raised the fact that a certain amount of control is exercised in the lending market by the so-called vulture funds by virtue of the fact that they will offer assistance where it suits them. They are very quick to adapt in situations like that, and not in the ways we would like. The point I wish to emphasise before I conclude is that there is a common trend when I make a proposal. I may spend a significant amount of time on the proposal and examine it from all aspects, including those of the bank and the borrower. When it goes forward, I am told by junior officials in the vulture fund that the proposal has gone upstairs for decision. You can be sure the same decision will come back every time. The vulture funds systematically say the proposal is not sustainable - the word "sustainable" comes in there very quickly - and they need payment in full. It is sometimes the case that, in panic, the borrower then goes to another lending institution and manages to get some kind of accommodation which is still insufficient to clear the debt in full but makes the mistake of going back to the current lender and making an offer. Once that offer is made, nothing happens afterwards. All the lending agency wants is full and total repayment and it keeps repeating that. The lending agencies are scaring simple people who borrowed small amounts that have accumulated through the years and turned into large amounts, with penalties involved in some cases. The point I wish to emphasise is that all members of the committee have dealt with them and seen what they can do and the power they wield at all times. It is up to us, as legislators, however, to continue to raise these issues. We should remember that insurance companies have the same attitude. They sell on insurance to another company but the person who took out the policy had no hand, act or part in that transfer and no influence over it. People regularly point out that they took out a policy with a different insurer and ask where that policy has gone and what has happened. I strongly advocate for a template that would apply.

In other words, if a borrower borrowed €10 million, for example, a piece under the scale, was being rushed into receivership or whatever and was forced to sell on to, a few years ago what was a very depressed market and did sell, held the property in place for a couple of years, maybe three to five years, and could afford to do it because of cashflow, and then offered for sale and make a huge profit out of it and nobody ever knows that. Then they come back to the borrower again and they now have the full loan, as originally offered and provided, and they add on interest. The fact is only part of it was paid off and they are now looking for the full and final amount again. It goes around in circles. We need legislation to narrow the degree to which the lending agencies can manoeuvre the borrower into various positions and that should be some kind of template with which they must comply.