Michael McGrath (Cork South Central, Fianna Fail)
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87. To ask the Minister for Finance the details of all known loan portfolio sales by regulated banks here, including the State supported banks since 2016; the project name given to the sale, in tabular form; the number and nature of the loans sold; the name of the purchaser; and the purchase price, if available. [8988/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The information which the Deputy is requesting is not held in my Department.  The Central Bank have informed me that under the Section 33AK of the Central Bank Act 1942, the Central Bank is not in a position to provide any specific information in this regard.

However, some of the information sought is publically available from other sources. For example, Deloitte’s fifth edition of the Deleveraging Europe series examines the European loans market, providing an up-to-date overview of the latest transactions at H1 2017 which can be found at  . In addition, further information published by KPMG in respect of European debt sales can be found at and  at

Michael McGrath (Cork South Central, Fianna Fail)
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88. To ask the Minister for Finance if unregulated loan owners are permitted by the Central Bank to have direct contact with the borrower in relation to their loan, for example, to discuss a possible restructuring of the loan; and if he will make a statement on the matter. [8989/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (“the 2015 Act”) was introduced in July 2015 to fill the consumer protection gap where loans are sold by the original lender to an unregulated firm. The 2015 Act introduced a new regulatory regime in respect of Credit Servicing Firms, bringing such firms within the Central Bank’s regulatory remit.

Under the 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 authorised and regulated by the Central Bank.

Credit servicing firms must comply with all relevant requirements of financial services legislation, including the regulatory requirements set out in the Central Bank’s statutory Codes of Conduct and Regulations.  These requirements include: 

- the Consumer Protection Code 2012;

- the Code of Conduct on Mortgage Arrears 2013;

- the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Small and Medium-Sized Enterprises) Regulations 2015;

- the Minimum Competency Code 2017 and the Minimum Competency Regulations 2017;

- Part V of the Central Bank Act 1997; and

- Fitness and Probity Regulations and Standards issued under Part 3 of the Central Bank Reform Act 2010.

Credit servicing firms are firms who manage or administer loans on behalf of the unregulated firm.  ‘Credit servicing’ includes all interactions with the consumer in respect of the loan, including:

- Notification of changes in interest rates or payments due;

- Collecting repayments on the loan;

- Managing complaints;

- Assessing the consumer’s financial circumstances in cases of financial difficulties; and

- Communications about potential restructuring arrangements.

The 2015 Act ensures that borrowers whose loans are sold to unregulated third parties maintain the regulatory protections they had prior to the sale.

Michael McGrath (Cork South Central, Fianna Fail)
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89. To ask the Minister for Finance the reason unregulated loan owners such as private equity funds should not be brought fully within the ambit of the Central Bank regulation; and if he will make a statement on the matter. [8990/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government introduced the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 to regulate Credit Servicing Firms.  The Central Bank regulates credit servicing firms who act as agents for the loan owners because it is the credit servicing firms that interact with the customers.

The Department's early position was that loan owners should be regulated but the consultation process undertaken at the time made it clear that credit servicing, as the customer-facing activity, was the appropriate activity to regulate and this legislation achieves this.

Credit Servicing Firms must comply with all relevant requirements of financial services legislation, including the regulatory requirements set out in the Central Bank’s statutory Codes of Conduct and Regulations.

The legislation ensures that borrowers whose loans are sold on to third parties maintain the same regulatory consumer protections they had prior to the sale. These issues are kept under regular review in my department.

Michael McGrath (Cork South Central, Fianna Fail)
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90. To ask the Minister for Finance the legal basis for applying the code of conduct on mortgage arrears and the consumer protection code to an unregulated loan owner. [8991/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (“the 2015 Act”) was introduced to fill the consumer protection gap where loans are sold by the original lender to an unregulated firm.  Under the 2015 Act, if the firm who bought loans from the original lender is an unregulated firm, then the loans must be serviced by a ‘credit servicing firm’which is regulated by the Central Bank.  Credit Servicing Firms are typically firms that manage or administer credit agreements such as mortgages or other loans on behalf of unregulated entities. The CCMA is a code issued under Section 117 of the Central Bank Act, 1989. The CCMA applies to all regulated mortgage lenders operating in the State when dealing with borrowers facing or in mortgage arrears on their primary residence, including any mortgage lending activities outsourced by these lenders.  Lenders are required to comply with all aspects of the CCMA and non-compliance with the CCMA is enforceable against regulated entities by the Central Bank. 

The CCMA sets out how mortgage lenders must treat borrowers in or facing mortgage arrears, with due regard to the fact that each case of mortgage arrears is unique and needs to be considered on its own merits.  All cases must be handled sympathetically and positively by the lender, with the objective at all times of assisting the borrower to meet his/her mortgage obligations.  The CCMA sets out the framework that lenders must use when dealing with borrowers in mortgage arrears or pre-arrears.

In relation to repossessions, Provision 56 of the CCMA provides that a regulated entity may only commence legal proceedings for repossession of a borrower’s primary residence where the regulated entity has made every reasonable effort under the CCMA to agree an alternative repayment arrangement with the borrower or his/her nominated representative, and the specific timeframes set out in the CCMA have been adhered to or the borrower has been classified as not co-operating and notified in accordance with the CCMA.

Michael McGrath (Cork South Central, Fianna Fail)
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91. To ask the Minister for Finance if a repossession action will be taken in the name of the unregulated loan owner or the appointed credit servicing firm in relation to a PDH mortgage acquired by an unregulated loan owner; and if he will make a statement on the matter. [8992/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Most loan agreements include a clause that allows the original lender to sell the loan on to another firm.The Central Bank has no jurisdiction over unregulated third parties and therefore has no power to investigate the activities of such entities.

However, under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (“the 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 authorised and regulated by the Central Bank.

Credit servicing firms are firms who manage or administer loans on behalf of the unregulated firm.  ‘Credit servicing’ includes all interactions with the consumer in respect of the loan, including:

- Notification of changes in interest rates or payments due;

- Collecting repayments on the loan;

- Managing complaints; and

- Assessing the consumer’s financial circumstances in cases of financial difficulties.

Under the 2015 Act, ‘credit servicing’ does not include taking such steps as may be

necessary for the enforcement of a credit agreement.

Michael McGrath (Cork South Central, Fianna Fail)
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92. To ask the Minister for Finance if in a situation in which an unregulated loan owner appoints a credit servicing firm in respect of a mortgage portfolio, it is the unregulated loan owner or the credit servicing firm that makes the final decision as to whether a restructuring agreement is entered into; if enforcement action is taken; if there is a change in the interest rate of a variable rate product; and if he will make a statement on the matter. [8993/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, most loan agreements include a clause that allows the original lender to sell the loan on to another firm.Under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (“the 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 authorised and regulated by the Central Bank.

Credit servicing firms are firms who manage or administer loans on behalf of the unregulated firm.  ‘Credit servicing’ includes all interactions with the consumer in respect of the loan, including:

- Notification of changes in interest rates or payments due;

- Collecting repayments on the loan;

- Managing complaints; and

- Assessing the consumer’s financial circumstances in cases of financial difficulties.

Under the 2015 Act, ‘credit servicing’ does not include:

- the determination of the overall strategy for the management and administration of a portfolio of credit agreements;

- the maintenance of control over key decisions relating to such portfolio; or

- taking such steps as may be necessary for the purposes of—

(i)  enabling the undertaking of credit servicing by another person, or

(ii) enforcing a credit agreement.