Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

48. To ask the Minister for Finance the way the Cerberus Group is regulated. [35380/15]

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

49. To ask the Minister for Finance the mechanism the public has for bringing complaints against the Cerberus Group, other than through the courts. [35381/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 48 and 49 together.

It is not my practice to comment on the regulatory status of individual firms. However, the Deputy will no doubt be aware that borrowers whose loans are sold are now protected by the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 which was enacted on 8 July this year. The purpose of the Act is to ensure that consumers retain the protections they had prior to the sale of their loan. The Act requires 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, need to be authorised by the Central Bank. Otherwise they can have the loan book serviced by a regulated credit servicing firm.

All consumer and relevant SME loans sold by regulated financial institutions are covered by this Act. Borrowers are therefore restored to the protections they previously had, such as the Code of Conduct on Mortgage Arrears (CCMA), the Consumer Protection Code and the Code of Conduct for Business Lending to Small and Medium Enterprises. Borrowers who previously had access to the Financial Services Ombudsman also have this right restored by this legislation. These borrowers, including those whose loans are owned by Cerberus, can complain to the Financial Services Ombudsman if they are unable to resolve the complaint with the firm.

The Central Bank is the competent authority in Ireland for the purposes of the Act and will implement a regulatory framework for credit servicing firms. I understand from the Central Bank that the Cerberus group is not on the list of firms currently authorised by the Central Bank. The Central Bank's registers can be found on the Central Bank's website at the following link: . The Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 has transitional provisions for firms who now require authorisation provided that they applied to the Bank for authorisation no later than 3 months after the coming into operation of the Act.

Due to the confidentiality provisions set out in Section 33AK of the Central Bank Act 1942, the Central Bank has informed me that it is not in a position to confirm whether Cerberus or any other entity is in the process of seeking authorisation by the Central Bank.