Ireland plans legislation to protect loan borrowers

 Ireland said on Monday it was planning new legislation to protect borrowers whose loans were sold to unregulated financial entities.
The Irish Times, one of the most influential newspapers in Ireland, reported that the Department of Finance was initiating a public consultation process, which would feed into the drafting the legislation.
The proposed legislation, which will be brought forward by the end of the year, was aimed at making companies that purchased loan books subject to the consumer protection rules here, the newspaper said.
The new legislation will make ownership of credit, as distinct from the provision of credit, a newly regulated activity which requires Central Bank authorization.
Up to 10,000 mortgages are now controlled by institutions which are under no obligation to act in accordance with the Central Bank's code of conduct on mortgage arrears.
The code obliges financial institutions to act within certain parameters when it comes to dealing with problem loans. It also affords borrowers complaints and appeals procedures should they feel unfairly treated.