Business Irish

Thursday 21 September 2017

IBRC home loans 'covered by consumer protection'

Charlie Weston

Charlie Weston

MORTGAGE holders who originally took out their loans with Irish Nationwide will be covered by consumer protection rules, the Central Bank has insisted.

The comments from regulators came after Australian financial group Pepper was selected by the National Asset Management (NAMA) to service the mortgages if they are not sold to some other bank.

These mortgages were first taken out through Irish Nationwide and Anglo Irish Bank and then ended up in IBRC. Some 9,000 of these mortgages are in arrears.

IBRC is in liquidation, but the mortgage book will be put into the National Asset Management Agency (NAMA) if it does not sell..

NAMA said it has now selected Pepper to manage the €1.8bn of mortgages if there are not sold.

Asked if mortgage holders would still be covered by consumer protection codes, the Central Bank said this was the case.

"The codes apply to regulated entities and to regulated activities outsourced by regulated entities. Pepper Finance Corporation (Ireland) Ltd is a regulated entity," a Central Bank spokesman said.

But the Financial Services Ombudsman Office questioned if Pepper would deal with it.

A spokesperson said: "We can only deal with firms regulated by the Central Bank and as far as we know Pepper is not regulated by the Central Bank."

The Central Bank confirmed that Pepper does not have a banking licence from it, but insisted that it was regulated in this country.

And a spokesman for Pepper said it was regulated here.

Irish Independent

Also in Business