Terence Flanagan (Dublin North East, Independent)
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191. To ask the Minister for Finance the reason behind the decision to regulate the servicing agent for the mortgage rather than the owner or fund holding the loan when preparing the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015; and if he will make a statement on the matter. [3394/15]

Michael Noonan (Limerick City, Fine Gael)
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During last summer, my Department undertook a public consultation process in relation to the proposed legislation to protect consumers when loan books were sold. This consultation process highlighted an issue with a passive special purpose vehicle, SPV, which we had not intended to intend regulate, outsourcing servicing to a firm that would not be regulated. It became clear from the consultation process that credit servicing, as the customer-facing activity, was the appropriate activity to regulate and this legislation achieves this. Responses to the consultation process were published on my Department's website .

Once it had been decided to regulate credit servicing rather than ownership, consideration was given to the appropriateness of regulating ownership.While the owner may make decisions on a credit agreement, it is the credit servicer who will communicate these decisions to the borrower.After considerable and detailed examination, I now accept that the best way of ensuring the borrower is protected and retains access to the Financial Services Ombudsman is to regulate credit servicing and ensure borrowers can complain to the Financial Services Ombudsman about any actions affecting the borrower. 

The Bill has now been published and I look forward to Second Stage in the House next week.