Robert Troy (Longford-Westmeath, Fianna Fail)
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116. To ask the Minister for Finance if he will review the threat of vulture funds given their resistance to dealing with the original borrowers in a fair manner; if he will consider eliminating their ability to write off expenditure against any tax; if he will ensure that profits are taxed in Ireland rather than Luxembourg; and if he will introduce an independent intermediary, who will be aware of what the vulture fund paid for the loan, in order to adjudicate what is a fair and reasonable offer. [38764/24]

Jack Chambers (Dublin West, Fianna Fail)
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There is a strong consumer protection framework in place, which is overseen by the Central Bank of Ireland, that seeks to ensure that all regulated entities are transparent and fair in all their dealings with borrowers and that borrowers are protected from the beginning to the end of the mortgage life cycle.

This consumer protection framework applies to entities that provide mortgages to consumers, and also to entities that service such agreements or subsequently acquire the legal title to the rights of a creditor under a mortgage or other credit agreement.

All these mortgage entities must act in accordance with Irish financial services law and with the consumer protection regulatory framework that applies to all Central Bank regulated firms. This means that where a mortgage creditor sells or assigns its legal rights under a credit agreement to another creditor, the consumer protections that were available to borrowers prior to such a transaction remain in place.

Therefore, while the level of consideration paid for the sale and purchase of a portfolio of loans is a private commercial matter for the parties to that particular transaction and I have no role in such pricing matters, the new creditor which acquires the contractual rights and benefits of the creditor following such a transaction will do so based on the terms of the existing loan agreement and also based on the regulatory protections available to consumers.

Accordingly, any new creditor will only be able to operate or enforce a credit agreement in accordance with the relevant terms of the particular agreement and in accordance with the relevant consumer protection framework.

This consumer protection framework includes the various Central Bank statutory Codes of Conduct such as the Consumer Protection Code and the Code of Conduct on Mortgage Arrears (CCMA). In particular, the CCMA provides specific protections to borrowers in arrears or facing a prospect of arrears on a loan secured on a primary residence. Under the CCMA all relevant regulated entities must pro-actively encourage borrowers to engage with them about financial difficulties that may prevent the borrower from meeting his/her mortgage repayments. Where a borrower is experiencing repayment difficulty, a regulated entity must explore all of the options for an alternative repayment arrangement (ARA) offered by the entity to determine if a more suitable and sustainable repayment option is available based on the borrower’s individual circumstances.

If a borrower is not satisfied with the options proposed, or if the regulated entity declines to offer an ARA, an appeals mechanism is provided for in the CCMA.

More generally, if a consumer is not satisfied with how a regulated firm is dealing with him/her in relation to the handling of his/her mortgage, or the consumer believes that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, he/she should make a complaint directly to the regulated firm.

If the consumer is still not satisfied with the response from the regulated firm, he/she can refer the complaint to the Financial Services and Pensions Ombudsman.

In relation to the operation of funds and their tax provisions, the Deputy will be aware that a review of the funds regime in Ireland has been underway since mid–2023 and has included an examination of the regimes for certain funds and their role in the property sector, including how they support housing policy objectives.

The review is now complete. A draft report was submitted to me for consideration in recent weeks and, as part of my consideration of the draft report, I will also consider the timing of its publication.