Michael McGrath (Cork South Central, Fianna Fail)
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84. To ask the Minister for Finance if the Central Bank has authority to investigate and impose a fine on an unregulated loan owner in the event that the loan owner has miscalculated the amount of mortgage arrears a borrower faces; when the function of calculating mortgage arrears lies with the unregulated loan owner and not the regulated credit servicing firm; and if he will make a statement on the matter. [49842/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Central Bank of Ireland (the Central Bank) does not regulate unregulated loan owners. The Central Bank therefore has no authority to investigate and impose a fine on an unregulated loan owner. However, under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (2015 Act), if a firm who bought loans from an original lender is unregulated then the loans must be serviced by a Credit Servicing Firm who is regulated by the Central Bank.

The 2015 Act ensures that any purchasers of loan books are required either to become regulated themselves by the Central Bank or use a regulated Credit Servicing Firm to service the loans. This means that Credit Servicing Firms will engage with consumers including when managing or administering the credit agreement, notifying the relevant borrower of changes in interest rates or in payments due under the credit agreement or other matters of which the credit agreement requires the relevant borrower to be notified.

The Administrative Sanctions Procedure, which is applicable to Credit Servicing Firms, is the means by which the Central Bank investigates and sanctions breaches of financial services law by regulated firms. Further information is available on the Central Bank’s website www.centralbank.ie/consumer-hub/explainers/what-enforcement-powers-does-the-central-bank-have.