Protective Regulation

SME Loans

Applicability The Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 (the “SME Regulations”), which took effect on 1st July 2016, apply to a regulated financial services provider (in this context a bank or retail credit firm) when it provides credit to small/ micro and medium sized enterprises.… Read the rest

SME Credit Issues

Refusal of Application Where a regulated lender refuses a credit application, it must, at the time it first informs the borrower of the refusal, provide the borrower with an explanation of the reasons why the credit was refused, in a durable medium.… Read the rest

SME Arrears

Arrears Issues Arising; Micro and Small Enterprises Where a borrower notifies a regulated lender that it may be at risk of going into arrears or if it is in arrears, notifies a lender that it is concerned about going into financial difficulties, the lender shall offer the borrower the option of immediate review of the credit facility agreement, alternative arrangements and security, as appropriate.… Read the rest

Mortgage Credit

Housing Loans Housing loans are regulated under Part IX of the Consumer Credit Act. The definition of a housing loan was extended in 2004 and covers the following; a loan to finance the acquisition on the security of a house occupied by the borrower as his principal residence or the principal residence of his or her dependants; a refinancing of an acquisition loan a loan on the security of a house where the person to whom credit is provided is a consumer.… Read the rest

Mortgage Arrears

Background and Application The Financial Regulator issued its first Code of Conduct on Mortgage Arrears in February 2009. This is binding on all regulated entities. This includes credit institutions and others regulated by the Financial Regulator as well as lenders operating in Ireland under EU cross-border rules.… Read the rest

Distance Contracts

Scope The European Communities (Distance Marketing of Consumer Financial Services) Regulations give effect to Directive 2002/65/EC concerning the distance marketing of consumer financial services. They apply to the marketing and supply of financial services to consumers under organised distance marketing schemes.… Read the rest

CPC Code General

Regulation of Financial Institutions Irish retail lenders are regulated by the Central Bank. Regulation was extended to retail credit firms, which formerly fell outside regulation, in 2008. This includes most so-called “sub-prime” lenders. The Financial Regulator was merged back into the Central Bank in 2010.… Read the rest

Consumer Credit

Consumer Credit Regulation I The Consumer Credit Act 1995 consolidated earlier moneylending and hire-purchase legislation and implemented Council Directive 87/102/EEC and Council Directive 90/88/EEC on consumer credit. It introduced provisions in relation to home loans, which are dealt with later.… Read the rest