The proposed sale of a vast swathe of loans by Irish banks to vulture funds should not proceed, says Fianna Fáil TD for Donegal Charlie McConalogue.
The Donegal Deputy has outined his party’s plans for the prevention of loan sales to so-called vulture funds which are ‘unregulated and unaccountable’. He said that Donegal homeowners are living in fear of being evicted as such funds are less likely to engage with customers.
Deputy McConalogue said, “It is evident that banks have shown very little willingness to work through their non-performing loan book. Instead of selling their loan book and outsourcing their dirty work to vulture funds, the banks should be providing sustainable and reasonable solutions for customers willing to cooperate with them.
“It is clear now that vulture funds are lining up to buy portfolios of loans from the main banks in Ireland. It is expected that these portfolios will involve SME loans and buy-to-let investment properties. However, the Government has allowed these funds to go completely unregulated in Ireland.
“Recently it has emerged that both AIB and Permanent TSB are taking steps to sell large swathes of their mortgage loan books to unregulated vulture funds. The Government has the power to stop this from occurring considering the Irish State has a majority stake holding in both banks.
“These vulture funds are accountable to nobody and are completely beyond the reach of the Central Bank. There are many families across Donegal who have fallen behind in their mortgage and are living in fear of losing their homes because they say it is almost impossible to engage with these firms. These funds’ sole interest is in the property, they take no account of social concerns.
“Fianna Fáil is opposed to the banks selling their loans to unregulated vulture funds. The banks should not be selling Irish loans to unregulated vulture funds. We will be bringing forward legislation to ensure these sales do not take place,” concluded Deputy McConalogue.