Mattie McGrath, leader of the Rural Independent Dáil Group is calling on Finance Minister Michael McGrath to hasten the enactment of the new EU Borrower-Protection Directive into Irish law. The directive, set to benefit over 142,000 borrowers, obliges creditors to establish beneficial policies and procedures, including partial debt forgiveness, before initiating enforcement proceedings.
Deputy McGrath wants the directive to be transposed into Irish law as is and cautions against any dilution that would unduly favour banks, bankers, and vulture funds.
Deputy McGrath notes that Edmund Honohan, Master of the High Court, recently demonstrated to the Oireachtas Finance Committee how non-bank entities, or vulture funds, manipulate the court system to dispossess distressed borrowers of their homes and farms.
The new EU Directive mandates non-bank entities to offer forbearance to mortgage holders. Presently, non-banks hold 16% of all principal private home mortgages and 38% of buy-to-lets in Ireland, amounting to 142,487 according to the latest Central Bank figures. Over half of all mortgages in arrears are held by vulture funds.
The Tipperary TD also wants the Finance Minister to address concerns that judges may not be fully informed about the new legal position created by the directive.
The Minister for Finance has indicated that work is progressing on the transposition of this directive, to apply its provisions, including amendments to the consumer credit and mortgage credit directives, from December 30, 2023.
