‘Protect tenants from vulture funds’

Political parties have called for action to protect home-owners, small businesses, and tenants from vulture funds.

Two hundred families are facing eviction from a Dublin housing estate, since a vulture fund moved against a developer.

Fianna Fáil finance spokesperson, Michael McGrath, said citizens must be protected from these vulture funds, who have already used “underhand tactics to trigger default on the part of borrowers, in an attempt to gain control of very valuable assets”.

Mr McGrath warned that there was a real risk that this type of action may be “stepped up”, once these funds feel the political backdrop is more favourable.

“There is now little doubt that we are going to see more of these developments, in the months ahead, unless concerted action is taken.

“Clearly, vulture funds feel that there is limited sanction in the law, as it currently stands, to prevent them putting SMEs into receivership or seeking repossession of family and buy-to-let properties,” Mr McGrath said.

The Sunday Business Post yesterday reported that more than 200 families living in a housing development in Tyrellstown, west Dublin, were facing eviction from their homes, following a deal between Goldman Sachs and a heavily indebted property developer.

Some families, living in rented accommodation in the Cruise Park area, have already been served with notices to quit their homes by property company, Twinlite.

Mr McGrath added: “The new Dáil must amend the legislation to ensure that any borrower who has entered into a restructuring arrangement, and who is sticking to it, cannot have that payment structure cancelled by the acquirer of a loan, or an agent operating on their behalf.”

Sinn Féin TD Sean Crowe also said members of the Dáil must quickly act to address vulture funds.

“How can we, in good conscience, sit in the Dáil and not act immediately to prevent this spiral of homelessness from claiming more and more families, as the weeks go by”?