Regulatory Alerts2019-10-23
Central Bank of Ireland Letter on Charging Legal and Third Party Costs to Mortgage Arrears Borrowers
The Central Bank of Ireland issued this letter to regulated retail credit firms to enforce compliance with the Code of Conduct on Mortgage Arrears 2013 and the European Union Consumer Mortgage Credit Agreements Regulations 2016. The regulator prohibits applying legal and third-party costs to borrowers' accounts before court awards, settlements, or redemption requests, and bans charging interest on such costs as it constitutes an unjust gain. Firms are required to review their internal systems and policies to align with these expectations and provide written confirmation of their corrective actions by 20 December 2019.
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