The Central Bank has again highlighted the potential risks to mortgage holders of having their loans placed with unregulated third parties or so-called vulture funds.

In the wake of the property crash, Irish banks and mortgage providers sold off loan books to third parties, leaving many borrowers outside the protection of regulation here.

Those who are struggling with mortgage repayments or who are in arrears are not necessarily afforded the protections of the Central Bank’s code of conduct on mortgage arrears for borrowers.

“We continue to highlight our views that the protections borrowers currently have when they get into difficulties meeting mortgage repayments should remain in place if their mortgage is sold to a third party,” the bank said in its first Consumer Protection Outlook report.

"We are working closely with the Department of Finance as it develops the necessary legislation and we will play our part in implementing the measures when finally agreed."

The department says many purchasers of loan books had already agreed to voluntarily apply the Central Bank codes but concedes voluntary compliance is not enforceable.

The Central Bank’s report sets out a number of consumer protection themes the bank intends to focus on in the coming year.

The bank wants to see the introduction of additional protections for SMEs when accessing credit and requirements for firms dealing with SMEs when they get into financial difficulty.

It also said it wants to build on its engagement with boards and chief executives, to ensuring that they can demonstrate delivery of meaningful consumer outcomes based on a better understanding of the needs, expectations and experiences of their customers.

“This includes requiring firms to demonstrate that their products are fit for purpose, going beyond tick-box and disclosure requirements to ensure that they are fair, suitable and understood by their customers,” it said.

“Culture plays a critical part in driving the behaviour of firms and individuals within them,” it said.

“ We can see as we engage with firms across the different sectors that a consumer-centred culture leads to more positive outcomes for consumers, as well as a more constructive engagement with the regulator.”

“It is essential that firms get their culture right if trust and confidence is to be restored and maintained in the financial services industry and it is fundamental to ensuring that consumers are treated fairly.”