Peadar Tóibín (Meath West, Sinn Fein)
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32. To ask the Minister for Finance the steps he has initiated to prevent banks selling loans to third party institutions for significantly less than the negotiated offers made by debtors. [17565/15]

Michael Noonan (Limerick City, Fine Gael)
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The banks are independent commercial entities and the relationship between the banks in which we have a shareholding and the Minister for Finance are defined in the relationship framework. I do not intend intervening in any decisions they may make in relation to how they dispose of loans at present.

I should add that the borrowers whose loans are sold to unregulated entities will be protected by the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 which will require entities dealing with the consumer to be authorised by the Central Bank and subject to its Codes of Conduct. Dealing with the consumer is credit servicing and the definition of credit servicing is broad. Owners of loan books who deal directly with consumers, that is, who are servicing their own loan books, will be regulated. Otherwise they can have the loan book serviced by a regulated credit servicing firm.

The Bill was published in January and second stage of the Bill was taken in the Dáil on 4 February. Since then, my officials have been in contact with the Central Bank and with the Office of the Attorney General to further progress the legislation. The Bill will continue its progress through the legislative process and I look forward to further discussion of the Bill at Committee Stage.