Fianna Fáil legislation to extend protections to borrowers

Fianna Fáil are to table amending legislation in the next two weeks to extend protections to home borrowers whose loans will be bought by vulture funds, a move that could likely snarl plans by Government-owned Permanent TSB for a huge €4bn disposal of distressed loans.

Finance spokesperson Michael McGrath had first signalled his opposition last week to the plans of Government-owned banks to sell mortgage loans to vulture funds because homeowners won’t have the same consumer protections when their loans are sold to the new owners.

An amendment to the 2015 Regulation of Credit Servicing Firms Act would ensure new owners of the loans, and not just their service agents or intermediaries, are covered by consumer protections, he said.