Fianna Fáil’s Spokesperson on Housing, Darragh O’Brien TD has said new measures to inspect and investigate the operation of vulture funds will offer a great degree of support for distressed borrowers in fear of losing their home or business.
President Michael D. Higgins recently signed the Fianna Fáil Private Members’ Bill to regulate vulture funds into law. The provisions of this new law are expected to come into effect later this month.
He said, “These new measures mark a positive transition for mortgage holders and business owners nationwide whose loans have been sold to a vulture fund and also for those who fear their loan could be sold on by their bank in the future.
“The Central Bank was previously unable to inspect or investigate vulture funds but as a consequence of our party introducing this law, will now be in the position to apply strict regulations. The regulator will also have the capacity to take enforcement action against these funds if necessary.
“Hundreds of families in the North County that are dealing with debt are petrified of losing their home or business and are more than prepared to come to an arrangement. The reality has been that many of these families have had to liaise with a vulture fund and so no reasonable options were on the table. With strict regulation now fully enshrined in law that’s likely to no longer be the case.
“Research carried out by the Central Bank itself indicates that a borrower is less likely to get a long-term restructure on their loan from a vulture fund than from a bank. A long-term restructure arrangement with a bank would provide most people struggling with debt a chance to hold on to their family home or their business.
“It’s not so long ago that Fine Gael welcomed the arrival of vulture funds into Ireland with much fanfare. They ultimately believe that they are the solution and their party is content with leaving distressed borrowers out in the cold,” concluded Deputy O’Brien.