Minister for Finance Michael Noonan will get civil servants to assist TDs concerned with the need to improve legislative protections for mortgage holders and businesses whose loans are held by vulture funds.
Mr Noonan made the pledge to Fianna Fáil finance spokesman Michael McGrath, who warned that if the Minister did not deal with the issue “this House will move to deal with it”.
Mr McGrath said there was a gap in the legislation and it was exposing borrowers. He warned that vulture funds were not restructuring loans “because they have no interest in the long-term. They’re interested in getting their hands on the underlying asset or selling on the loan.”
The Cork South Central TD said it was unacceptable “that funds who call all the shots in relation to loans remain beyond the ambit of regulation”.
He had a letter from an intermediary which included only a PO box number with no contact number and no address. He had referred the letter to the Central Bank, and it was in order.
Mr McGrath said the vulture funds and not the intermediaries “are calling the shots”, although there should be no direct contact with the loan holder.
The Minister said his advice was different to Mr McGrath’s but if he listed the precise difficulties with the legislation “I will engage with you and put civil servants at your disposal to draft amending legislation”.
