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

I believe there is an issue and that it will become a much bigger one. It is true to say the new owner of the loan steps into the shoes of the original lender and all the same terms and conditions apply. However, the nature of a commercial loan agreement is such that it is heavily stacked in favour of the lender. Basically, the loan can be called in at will and in the matter of a number of working days by way of notice. This opens up the real possibility that someone with negative intentions in respect of a loan relating to a business can take ownership of it and, essentially, trigger the calling in of the loan and move on the original borrower. We are entering into a period now when the funds will seek to get a return on their investment. They will want to turn over the loan portfolios they bought. They are slicing them up into much smaller parcels. I take the Minister's point on the issue of non-bank finance, which I support, but a way has to be found to tackle this issue. A person's loan could in theory end up in unsavoury hands. That is the reality. All they need to do is appoint a credit servicing firm to comply with the law. This exposes the original borrower to major risk.

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