Finian McGrath (Dublin North Central, Independent)
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Question 141: To ask the Minister for Finance the safeguards in place for mortgage holders whose mortgages are sold to a third party. [29560/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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When a regulated firm has assigned its rights and responsibilities under a contract which is subject to the Consumer Credit Act 1995 (CCA), to a third party, this will not negate the application of the CCA to that agreement. It is important to note that a consumer's statutory right cannot be set aside or contracted out of by the assignee of an agreement.

No new rights are created, and the debt collector must proceed on the same basis as the creditor could lawfully proceed under the Consumer Credit Act 1995.

Furthermore, section 40 of the Consumer Credit Act, 1995 provides that "Where a creditor's or owner's rights under an agreement are assigned to a third person, the consumer shall be entitled to plead against that third person any defence which was available to him against the original creditor including set-off".

For guidance purposes for credit institutions (Banks, Building Societies and Designated Credit Institutions) the Central Bank has a Code of Practice on the Transfer of Mortgages. This Code of Practice which is available on the Financial Regulator's website provides amongst other things that a loan secured by the mortgage of residential property may not be transferred without the written consent of the borrower.