PTSB loans should not be sold to unregulated funds – Brendan Smith T.D.

permanent-tsb-1024x576Fianna Fáil TD for Cavan-Monaghan Brendan Smith says the latest statement from Permanent TSB relating to its proposed loan portfolio sale does not address the core issue of unregulated vulture funds.  Deputy Smith says the sale should not be allowed to proceed.

“The situation whereby a bank can sell on loan to a vulture fund which is not accountable to the Central Bank and is completely unregulated in this country is completely unacceptable”, said Deputy Smith.

“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 – mostly because the Government has allowed these funds to go completely unregulated in Ireland.

“These vulture funds are accountable to nobody and are completely beyond the reach of the Central Bank. There are many families across Cavan and Monaghan 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.

“AIB and Permanent TSB are now 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.

“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 Brendan Smith.