Sherlock welcomes financial protection for families

Government approves publication Bill to protect loans

Minister Seán Sherlock TD has welcomed the Cabinet decision to approve the publication of the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 in the coming days.

“My Ministerial colleague, Minister for Finance Michael Noonan T.D. briefed the Cabinet on the details of the Bill, the primary purpose of which is to protect consumers whose loans are sold to unregulated entities,” said Minister Sherlock.

“I have had a number of concerned queries from constituents on this matter. This is an important piece of legislation will ensure that families whose loans are sold by a regulated entity to a currently unregulated entity maintain the same protections as they had prior to the sale. The protections will apply to all consumers regardless of when the loans were drawn down, thus providing complete certainty to all customers.”

“The Bill protects consumers whose loans are sold to unregulated entities. Credit servicing firms will require authorisation from the Central Bank and will be regulated by the Central Bank. All borrowers will have access to the Financial Services Ombudsman complaints procedure regarding treatment by credit servicing firms.”

The Bill was prepared following a public consultation process in July and August of last year which sought the views of interested parties. In total nineteen submissions were received from a range of respondents including the financial services industry, consumer groups, public representatives, individuals and other stakeholders.

Subject to the legislative programme, the Bill will go through the Houses of the Oireachtas in the early part of 2015