Regulatory Alerts2019-10-23
Central Bank of Ireland Letter on Charging Legal and Third Party Costs to Mortgage Borrowers in Arrears
The Central Bank of Ireland issued this letter to regulated entities following an investigation into the practice of charging legal and third-party costs to borrowers in mortgage arrears. The regulator mandates that these costs must not be applied to accounts until a court awards them, a settlement is reached, or the borrower redeems the mortgage, and strictly prohibits charging interest on such costs under EU regulations. Regulated firms are required to review their systems and provide written confirmation by December 20, 2019, that their practices align with these consumer protection expectations.
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