The Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 came into force on 8 July 2015. The Act aims to protect borrowers whose loans are sold to unregulated entities. The Act ensures that consumers retain the protections they had prior to the sale of their loan.
The Central Bank has published the application form for authorisation as a Credit Servicing Firm and an accompanying Guidance Note on Completing a Stage 1 Application for authorisation as a Credit Servicing Firm, and has also issued a Consultation Paper on Authorisation Requirements and Standards for Credit Servicing Firms.
The views of all interested parties are being sought on the proposed Authorisation Requirements and Standards that applicants seeking authorisation as a Credit Servicing Firm must satisfy to be granted an authorisation and which must be complied with thereafter on an on-going basis. The proposals under consideration as part of this Consultation Paper broadly reflect the requirements and standards that currently apply to other sectors falling within the regulatory remit of the Central Bank. Once the Authorisation Requirements and Standards for Credit Servicing Firms have been finalised, it is the Central Bank’s intention to apply corresponding standards to Retail Credit Firms following a separate public consultation exercise, which will have regard to the feedback to this consultation as applicable. The closing date for submissions is 30 September 2015.