Watch as protesters deliver coffin to PTSB bank; Government to support FF bill to regulate vulture funds
The Government will support the Fianna Fáil bill to regulate vulture funds.
However, Finance Minister Paschal Donohoe said it needs significant redrafting to have the desired effects.
He has also instructed the Central Bank to review their Code of Conduct on mortgages that are in arrears.
Protections for distressed mortgage borrowers must be put in place as a priority to regulate vulture funds, Fianna Fáil have said in advance of a Dáil debate this week, writes Juno McEnroe.
The Government are meeting on the issue and are expected to agree to accept the opposition party's legislative proposal to regulate funds and also beef up the code of conduct of loan owners.
State-owned bank PTSB is preparing to sell off some 18,000 mortgages, most which are home loans. But there is concern borrowers will see their debts offloaded to unregulated bodies or vulture funds.
Speaking this morning, Fianna Fáil finance spokesman Michael McGrath said he expected his Bill would be accepted by Government but then must be enacted as a priority. The Bill will be debated in the Dáil tomorrow.
The Cork South Central TD said the purpose of the Bill was to ensure that funds, whether they are buying up a farm, business or home loans, are fully regulated by the Central Bank.
He said: “Ultimately, the loan owner, the vulture fund, calls all the important shots, makes all the future decisions about the future of a loan whether it be to initiate enforcement proceedings, restructure a loan or indeed to change the interest rate.
“What we are looking for is a significant change in Government policy.”
He pointed out the current policy was that the credit servicing firm, or middle man, for a loan body needed to be regulated, but not a fund itself.
Fianna Fáil also want a review of the code of conduct of mortgage arrears.
This is to ensure that where loans have been restructured, and people are fulfilling the terms of that restructured agreement, that they are fully protected from any “aggressive action” by any new loan owner.
“So the indications are that the Government will work with us and accept our bill,” added Mr McGrath.
“The most important thing is that this bill is not allowed to gather dust. This bill or any equivalent Government bill must become law and become law as a matter of priority so that we do have a common standard of regulation.”
This was so vulture funds could be held accountable, he said, and subject to inspection and investigation and also to sanction by the Central Bank.
The TD said Fianna Fáil wanted the legislation enacted as a "priority" and put in place in a few months.
The Cabinet today will decide its position on the Bill.
