Written answers

Tuesday, 27 March 2018

Department of Finance

Central Bank of Ireland Data

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

72. To ask the Minister for Finance if he will request the Central Bank to compile up to date data on the number and value of SME and farm loans held by unregulated loan owners; if the Central Bank can compile such data; and if he will make a statement on the matter. [13644/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I have been informed by the Central Bank that it does not routinely publish specific data on entities who are not regulated by the Central Bank and it is therefore not possible to provide the numbers requested by the Deputy.

I would however refer the Deputy to the Report on Mortgage Arrears which the Central Bank provided to the Minister for Finance in June 2016. The report is available on the department’s website and provides details of the total number of loans/value of loans owned by unregulated entities as at the end of June 2016.

Loans can be sold by regulated entities to entities that are not regulated by the Central Bank. In July 2015, the Consumer Protection (Regulation of Credit Servicing) 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.

I should also refer to the Deputy’s Private Members’ Bill which was discussed in the Dáil on 6 March and which seeks to increase consumer protections when loans are sold by requiring the regulation of loan owners by the Central Bank.

The Government has committed to supporting the passage of this legislation and my officials are actively working to resolve the drafting challenges presented by the legislation in its current form.  I understand that a meeting will be held with the Deputy this week.

Under the 2015 Act, if the firm which bought loans from the original lender is an unregulated firm, then the loans must be serviced by a ‘credit servicing firm’. Credit Servicing Firms are required to obtain authorisation from the Central Bank in order to conduct credit servicing activities as defined in the 2015 Act.

Credit servicing firms must act in accordance with the requirements of Irish financial services law that applies to ‘regulated financial service providers’. This ensures that consumers, whose loans are sold to another firm, maintain the same regulatory protections that they had prior to the sale, including under the various statutory Codes of Conduct issued by the Central Bank including the SME Regulations 2015.

Comments

No comments

Log in or join to post a public comment.