New legislation proposed in
Ireland will have implications for owners of Irish loans, persons
lending into Ireland and securitisation structures
Background
In 2014, a political issue surfaced in Ireland surrounding the
sale of loan portfolios by a number of Irish banking entities.
These portfolios were often acquired from regulated banks by
newly-formed Irish special purpose companies. The Irish Government
announced in July 2014 that it intended to introduce new laws
"to ensure that borrowers whose loans are sold by a
regulated entity to a currently unregulated entity maintain the
same regulatory protections as they had prior to the
sale". Following a consultation process, the Consumer
Protection (Regulation of Credit Servicing Firms) Bill 2015 (the
"Bill") was published by the Irish
Government last week.
