Consumer Banking, Credit, Arrears and Certain Other Financial Arrangements

Part 3: Consumer Banking, Credit, Arrears and Certain Other Financial Arrangements

Chapter 1: Knowing the consumer and suitability – additional requirements

130. Affordability assessment to be carried out

(1) Prior to offering, recommending, arranging or providing a credit product, hire-purchase agreement, consumer-hire agreement or BNPL agreement, to a personal consumer, a regulated entity that is a lender shall carry out an affordability assessment to ascertain the personal consumer’s likely ability to repay the debt over the duration of the agreement.

(2) For the purposes of paragraph (1), an affordability assessment shall include consideration by the lender of the information gathered under Regulation 16(3)(b) and Regulation 16(3)(c).

(3) The lender shall notify the intermediary through which the credit product, hire-purchase agreement, consumer-hire agreement or BNPL agreement, is distributed to the consumer, if any, of the results of the affordability test referred to in paragraphs (1) and (2).

(4) A regulated entity shall take account of the result of the affordability assessment when deciding whether a personal consumer is likely to be able to repay the debt for that amount and duration in the manner required under the applicable credit agreement, hire-purchase agreement, consumer-hire agreement or BNPL agreement.

(5) When assessing and documenting the matters referred to in Regulation 17(2), the regulated entity shall also assess and document whether, on the basis of the information gathered under Regulation 16(1) to (10), in the case of credit products, hire-purchase agreements, consumer-hire agreements or BNPL agreements, a personal consumer has the ability to repay the debt in the manner required under the credit agreement, hire-purchase agreement, consumer-hire agreement or BNPL agreement, on the basis of the outcome of the assessment of affordability.

(6) Paragraph (5) does not apply to the activities of a creditor within the scope of the European Union (Consumer Mortgage Credit Agreements) Regulations 2016.

131. Lenders to carry out further affordability and suitability assessment

A regulated entity shall carry out a further affordability and suitability assessment, in accordance with Regulations 17 and 130, including, where applicable, Regulation 182, prior to offering, recommending, arranging or providing additional credit, hire-purchase, consumer-hire or BNPL facilities, to a personal consumer, whether by way of a top-up on an existing loan or agreement, or by a new credit agreement, hire-purchase agreement, consumer-hire agreement or BNPL agreement.

Chapter 2: Additional information requirements

132. Interpretation (Chapter 2)

In Regulations 134 to 137, a reference to “credit” shall be taken to include, where relevant and without limitation, reference to a consumer-hire agreement, hire-purchase agreement and a BNPL agreement.

133. Requirement for publishing interest rates

(1) Where a regulated entity publishes a notice for consumers regarding a change in interest rates, the regulated entity shall specify in the notice the old rate, the new rate and the date from which the changes will apply.

(2) Where a regulated entity publishes interest rates by any means that it uses to publish information for consumers, including telephone helplines and websites, the regulated entity shall update the information specified by such means as soon as any interest rate change comes into effect.

134. Personal consumers to receive explanation of consequences of missing scheduled repayments

(1) Prior to approving credit for a personal consumer involving scheduled repayments, a regulated entity shall explain to the personal consumer the consequences under the credit agreement of missing any scheduled repayments.

(2) A regulated entity shall highlight the consequences of missing the scheduled repayments in all documentation related to such credit agreement provided to the personal consumer.

(3) A regulated entity shall provide the following warning statement in the credit agreement documentation referred to in paragraph (2):

“Warning: If you do not meet the repayments on your credit agreement, your account will go into arrears. This may affect your credit report, which may limit your ability to access credit in the future.”

135. Reasons to be provided for not approving personal consumer credit application

(1) A regulated entity that does not approve a personal consumer’s formal application for credit shall provide to the personal consumer the reasons why the credit was not approved.

(2) For the purposes of paragraph (1), the regulated entity shall –

(a) offer to provide the reasons on paper or on another durable medium,

(b) if requested by the personal consumer, provide the reasons on paper or on another durable medium, and

136. Information to be provided to personal consumers regarding early redemption charge

(1) Paragraph (2) applies where a regulated entity -

(a) offers credit on a fixed interest rate to a personal consumer, or

(b) offers a personal consumer the option to fix their interest rate or to switch to a fixed interest rate, in respect of an existing credit agreement with the personal consumer.

(2) In the circumstances referred to in paragraph (1), a regulated entity shall provide in its credit documentation a worked example, specific to the personal consumer, of the early redemption charge in monetary terms, and details in relation to the calculation of this charge.

137. Information to be provided on guarantee documentation where offering credit to personal consumers

Where a regulated entity offers credit to a personal consumer subject to provision of a guarantee, the regulated entity shall ensure that the guarantee documentation –

(a) clearly specifies the obligations of the guarantor in respect of the credit, and

(b) contains a warning statement in the following format:

“Warning: As a guarantor of this credit, you will have to pay off any outstanding debt amount, the interest and all associated charges up to the level of your guarantee if the borrower(s) do(es) not. Before you sign this guarantee you should get independent legal or financial advice.”

138. Indicative comparison of total cost to be provided to personal consumers when consolidating loans

(1) Prior to offering, recommending, arranging or providing a loan to a personal consumer for the purpose of consolidating other loans or credit, a regulated entity shall provide the personal consumer, on paper or on another durable medium, with an indicative comparison of the total cost of the consolidated loans or credit and the total cost of the consolidating loan.

(2) Any assumptions used by a regulated entity for the purposes of the comparison referred to in paragraph (1) shall be reasonable, justifiable and clearly stated.

139. Information to be provided to personal consumers on lifetime mortgages

Prior to offering, recommending, arranging or providing a lifetime mortgage to a personal consumer, a regulated entity shall inform the personal consumer of the legal and practical consequences of entering into a lifetime mortgage providing, at a minimum, the following information on paper or on another durable medium:

(a) the terms of repayment of the loan, including any terms providing for repayment prior to the date of maturity of the loan;

(b) details of the applicable interest rate;

(d) an indication of the monetary amount required to repay the loan at maturity, based on the interest rate applicable to the loan at drawdown applying for the duration of the term of the loan;

(e) the effect on an existing mortgage, if any;

(f) if the terms referred to in paragraph (a) provide for early repayment, an indication of the likely early redemption costs which would be incurred if the loan was redeemed on each of the following dates:

(i) 3 years from the date of the provision of the loan;

(ii) 5 years from the date of the provision of the loan;

(iii) the date at the end of each remaining 5 year period within the term of the loan after the date referred to in subparagraph (ii);

(g) the party that would be liable for any redemption costs;

(h) whether the personal consumer or their estate would be liable for any shortfall arising when the proceeds of sale of the mortgaged property are used to repay the loan;

(i) details of any costs which may apply over the term of the lifetime mortgage or on the sale of the mortgaged property.

140. Information to be provided to personal consumers on home reversion agreements

(1) Prior to offering, recommending, arranging or providing a home reversion agreement to a personal consumer, a regulated entity shall inform the personal consumer of the legal and practical consequences of entering a home reversion agreement providing, at a minimum, the following information on paper or on another durable medium:

(a) the circumstances in which the agreement comes to an end;

(b) the effect on the personal consumer’s existing mortgage, if any;

(c) in the case of a variable-share contract, an indication of the potential change over the duration of the agreement in the portioning of ownership of the property between that held by the home reversion firm and the personal consumer.

(2) In this Regulation, “variable-share contract” means a home reversion agreement where the portion of the property held by the regulated entity changes during the term of the home reversion agreement.

141. Conditions for reliance on assumptions in providing information pursuant to Regulations 139 and 140

Where it is necessary for a regulated entity to rely on assumptions in the provision of the information provided pursuant to Regulations 139 and 140, the assumptions shall be reasonable, justifiable and clearly stated.

142. Importance of obtaining independent legal and financial advice to be notified with lifetime mortgages and home reversion agreements

Prior to offering, recommending, arranging or providing a lifetime mortgage or a home reversion agreement to a personal consumer, a regulated entity shall inform the personal consumer of the importance of obtaining independent legal and financial advice regarding the proposed transaction.

143. Warning statements to be included with information on lifetime mortgages and home reversion agreements

(1) When giving information to a personal consumer regarding a lifetime mortgage or a home reversion agreement, a regulated entity shall include warning statements on the following:

(a) an application form or any other document provided to the personal consumer;

(b) the regulated entity’s website.

(2) For the purposes of paragraph (1), warning statements in relation to lifetime mortgages shall contain the following texts, inserting the appropriate information in place of the instruction in square brackets for that purpose:

(a) In respect of a lifetime mortgage where no interest is payable during the term of the mortgage, but the interest is charged each month or year and added to the amount owed, with the amount owed plus the added interest then being payable in full in circumstances such as death, or permanent vacation or sale of the mortgaged property:

“Warning: While no interest is payable during the term of the mortgage, interest is charged each [insert ‘month’ or ‘year’ as appropriate] and added to the amount owed. The amount owed plus the added interest is then payable in full in circumstances such as death, or permanent vacation or sale of the mortgaged property.”;

(b) In respect of a lifetime mortgage where interest is charged on an increasing sum (made up of the outstanding mortgage and added interest amounts), but no scheduled repayments are required to be made, the interest then being added to the outstanding debt on a continual basis:

“Warning: Unlike certain other mortgages where interest is charged on a sum that decreases with time, interest on lifetime mortgages is charged on an increasing sum (made up of the outstanding mortgage and added interest amounts), and therefore the total amount owed can increase quickly. As you are not required to make any scheduled repayments, the interest on your mortgage is added to your outstanding debt on a continual basis and you are effectively charged interest on that interest. This is called ‘compound interest’.”;

(c) In respect of a lifetime mortgage where the debt, if unpaid, could come close to, or equal or exceed the value of the mortgaged residential property:

“Warning: The longer a lifetime mortgage remains unpaid, the more money you will owe and the amount you owe could eventually come close to, equal, or exceed, the value of the mortgaged residential property.”;

(d) In respect of a lifetime mortgage where the debt, if unpaid, could come close to or equal, but not exceed, the value of the mortgaged residential property:

“Warning: The longer a lifetime mortgage remains unpaid, the more money you will owe and the amount you owe could eventually come close to or equal, the value of the mortgaged residential property.”;

(e) In respect of all lifetime mortgages:

“Warning: Purchasing this product may negatively impact on your ability to fund future needs. Before purchasing this product, you should get independent legal or financial advice.”.

(3) For the purposes of paragraph (1), warning statements in relation to home reversion agreements shall contain the following texts:

(a) “Warning: The money you receive in exchange for transferring a share in your home may be much less than the actual market value of the share in your home.”;

(b) “Warning: Purchasing this product may negatively impact on your ability to fund future needs as a result of transferring a share in your home.”.

144. Credit institutions to provide information on term or notice deposit accounts

(1) In relation to a term or notice deposit account provided by a credit institution to a consumer with a balance in excess of €100, or the equivalent amount in a currency other than euro, the credit institution shall provide to the consumer, on paper or on another durable medium, at least every 12 months, the following:

(a) a statement of the account which includes, where applicable -

(i) the opening balance,

(ii) all additions,

(iii) all withdrawals,

(iv) all interest credited,

(v) all charges,

(vi) the closing balance,

(vii) details of the interest rate applied to the account during the period covered by the statement, and

(viii) where tax is deducted from interest credited, information on the tax deducted or on how consumers may obtain a certificate detailing the tax paid;

(b) details of interest rates applied to other similar accounts available to the consumer from that credit institution.

(2) Where the term of the term or notice deposit account referred to in paragraph (1) is less than one year, the credit institution shall provide to a consumer a closing statement which contains the information referred to in paragraph (1)(a) and (b).

(3) Where a regulated entity is required to provide a consumer with a statement pursuant to this Regulation, the regulated entity shall, where the statement has not already been provided on paper, inform the consumer that he or she may request the statement to be provided on paper, and, if requested by the consumer, the regulated entity shall provide the statement on paper to the consumer.

145. Credit institutions to provide information on fixed term deposits

(1) Prior to the maturity of a fixed term deposit made by a consumer, a credit institution shall notify the consumer making the deposit about its impending maturity and the maturity date, in accordance with paragraphs (2) and (3).

(2) For the purposes of paragraph (1) the credit institution shall provide to the consumer -

(a) at least 10 working days’ notice in respect of a fixed term deposit with a term of less than 12 months, or

(b) at least 30 calendar days’ notice in respect of a fixed term deposit with a term of 12 months or more.

(3) Paragraphs (1) and (2) do not apply where the maturity date of the fixed term deposit is less than 30 calendar days.

146. Providers of loan accounts to provide statements to personal consumers

(1) In relation to a loan account provided by a regulated entity to a personal consumer, the regulated entity providing the loan account shall, at least every 12 months, provide to the personal consumer, on paper or on another durable medium, a statement of the account which includes the following:

(a) the opening balance;

(b) all transactions;

(d) the outstanding balance due;

(e) details of the interest rate applied to the account during the period covered by the statement.

(2) Where a regulated entity is required to provide a consumer with a statement pursuant to this Regulation, the regulated entity shall, where the statement has not already been provided on paper, inform the consumer that he or she may request the statement to be provided on paper, and, if requested by the consumer, the regulated entity shall provide the statement on paper to the consumer.

147. Providers of loans to notify personal consumers of interest rate changes

(1) A regulated entity shall notify a personal consumer to whom it provides a loan of any change in the interest rate on the loan, on paper or on another durable medium.

(2) The notification referred to in paragraph (1) shall include the following:

(a) the date from which the new interest rate applies;

(b) details of the old interest rate and the new interest rate;

(d) an invitation for the personal consumer to contact the lender if he or she anticipates difficulties meeting any higher repayments.

(3) For the purposes of paragraph (2)(c), in respect of a mortgage where an alternative repayment arrangement has been put in place in accordance with Chapter 9 of Part 3, the notification shall clearly indicate the revised repayment amount that applies to the alternative repayment arrangement.

(4) A regulated entity shall provide the notification required pursuant to paragraph (1) –

(a) at least 30 calendar days in advance of any increase in the interest rate, subject to Regulation 187(6), and

(b) in respect of a decrease in the interest rate, as soon as practicable.

(5) A regulated entity is not required to comply with the notification requirement pursuant to paragraph (1) in respect of a loan that is not a mortgage loan, provided that all of the following conditions are satisfied:

(a) the change in interest rate is caused by a change in a reference interest rate which changes on a daily or weekly basis;

(b) the new reference interest rate is made publicly available by appropriate means;

(c) information concerning the new reference interest rate is kept available in the regulated entity’s public offices and on its websites on which it provides information in respect of its regulated activities.

(6) Where an exemption applies to a regulated entity pursuant to paragraph (5), the regulated entity may choose to comply with the notification requirement pursuant to paragraph (1) if it wishes to do so.

Chapter 3: Additional post-sale information requirements

148. Guarantor of personal consumer credit to be notified

(1) Where a regulated entity has advanced credit to a personal consumer subject to a guarantee, the regulated entity shall promptly notify the guarantor, on paper or on another durable medium, if the terms of the credit agreement change.

(2) In this Regulation, a reference to “credit” shall be taken to include, without limitation, reference to a consumer-hire agreement, hire-purchase agreement and a BNPL agreement.

Chapter 4: Advertisements

149. Scope and application (Chapter 4)

(1) Subject to paragraph (2), this Chapter applies to advertisements which refer, or relate, to a regulated activity which can be provided, or is available, to a consumer.

(2) Regulations 150 to 154, and Regulation 157, apply only to advertisements which refer, or relate, to a regulated activity which can be provided, or is available, to a personal consumer.

150. Referring to annual percentage rate

(1) A regulated entity shall ensure that in an advertisement in which it refers to an annual percentage rate, it states if the applicable interest rate is fixed or variable.

(2) For the purposes of paragraph (1), where the interest rate is a fixed interest rate, the regulated entity shall specify the term of the fixed interest rate in the advertisement concerned and shall specify the interest rate that will apply after the fixed interest rate has expired.

151. Advertising term loans and other arrangements while specifying annual percentage rate and term

(1) Subject to paragraph (2), a regulated entity shall ensure that in an advertisement in which it advertises a term loan, hire-purchase agreement, a consumer-hire agreement or a BNPL agreement, specifying the annual percentage rate and the term, it also specifies the total cost of credit, the hire-purchase agreement, the consumer-hire agreement, or the BNPL agreement, by means of an example.

(2) Paragraph (1) does not apply to an advertisement in respect of a mortgage loan.

152. Fixed-rate loans and other arrangements – warning statement regarding early payment

A regulated entity shall ensure that, in an advertisement in which it advertises a fixed-rate loan, a hire-purchase agreement, a consumer-hire agreement or a BNPL-agreement, it provides a warning statement in the following format, inserting the appropriate information in place of the instruction in square brackets for that purpose:

“Warning: You may have to pay charges if you pay off a [state product type: fixed-rate loan, hire-purchase agreement, consumer-hire agreement or BNPL-agreement] early.”

153. Personal lending and other arrangements - warning statement regarding failure to make repayments

A regulated entity shall ensure that, in an advertisement in which it advertises personal lending, a hire-purchase agreement, a consumer-hire agreement or a BNPL-agreement, involving scheduled repayments, it provides a warning statement in the following format, inserting the appropriate information in place of the instruction in square brackets for that purpose:

“Warning: If you do not meet the repayments on your [state product type: loan, hire-purchase agreement, consumer-hire agreement or BNPL-agreement], your account will go into arrears. This may affect your credit report, which may limit your ability to access credit, a hire-purchase agreement, a consumer-hire agreement or a BNPL-agreement in the future.”

154. Credit enabling consolidation of debts – required information

(1) A regulated entity shall ensure that an advertisement for credit enabling the consolidation of 2 or more debts provides the following warning statement:

“Warning: This new credit may take longer to pay off than your previous credit. This means you may pay more than if you paid off your credit over a shorter term.”

(2) Where the advertisement referred to in paragraph (1) offers sample figures in the advertisement, the regulated entity shall ensure that the advertisement indicates the difference between the total cost of credit to a consumer of the consolidated credit and the total cost of credit to a consumer of the individual debts that are the subject of consolidation.

155. Displaying interest rate for savings or deposit account

A regulated entity shall ensure that, in an advertisement in which it displays an interest rate for a savings or deposit account, the following information is clearly and prominently stated:

(a) whether the interest rate quoted is fixed or variable;

(b) if the interest rate quoted is fixed, the period for which it is fixed and, where relevant, an indication of the rate that will apply after that fixed period;

(c) the relevant interest rate for each term quoted and the annual equivalent rate, and each such interest rate and annual equivalent rate shall be of equal size and prominence;

(d) the minimum term or amount required to qualify for a specified rate of interest, if applicable;

(e) if any tax is payable on the interest earned on the account.

156. Annual equivalent rates

A regulated entity shall ensure that in an advertisement in which it displays an annual equivalent rate -

(a) the annual equivalent rate is not misleading,

(b) any assumptions used in the calculation of the annual equivalent rate are reasonable, accurate and clearly stated, and

157. Home reversion agreements

A regulated entity shall ensure that, in an advertisement in which it advertises a home reversion agreement, it provides the following warning statements:

(a) “Warning: The money you receive in exchange for transferring a share in your home may be much less than the actual market value of the share in your home.”;

(b) “Warning: Purchasing this product may negatively impact on your ability to fund future needs as a result of transferring a share in your home.”.

Chapter 5: Additional miscellaneous business requirements for credit institutions and provision of credit

158. Credit institutions to follow timelines for crediting funds to term or notice deposit accounts

(1) A credit institution shall credit any funds received by it, directly or via a deposit agent, which are to be lodged to a consumer’s term or notice deposit account, to that account by close of the working day on which the funds are received.

(2) Where the funds are not credited on the day they are received by the credit institution in accordance with paragraph (1), the credit institution shall backdate credit for those funds to that day.

159. Credit institution to give information and protect consumer interests when closing, merging or moving local branches (G)

G: GEN (PDF 1.33MB)

(1) When intending to close a branch, merge branches, or move a branch, in the State, a credit institution shall take the following action:

(a) notify the Bank without delay when the decision to close, merge, or move has been made;

(b) provide the notification referred to in subparagraph (a) at least 2 months in advance of notifying affected consumers or the wider community of the decision;

(c) inform the Bank of any relevant planned steps or subsequent developments which have the potential to affect consumers during the period from the date of notification referred to in subparagraph (a) to the date of closure, merger or move;

(d) subject to notifying the Bank in accordance with subparagraphs (a) and (b), provide at least 6 months’ individual notice to every consumer that is a customer of the credit institution through the relevant branch, prior to the closure, merger or move, to enable such consumers to make alternative arrangements;

(e) properly complete all business of the branch prior to the closure, merger or move, or, alternatively, inform the consumers referred to in subparagraph (d) of how continuity of an equivalent service will be provided through another branch;

(f) subject to notifying the Bank in accordance with subparagraphs (a) and (b), notify the wider community of the closure, merger or move at least 6 months in advance, by way of public notification in a manner appropriate to the individual characteristics of the locality in which the branch is located.

(2) Where it intends to close a branch in the State, the credit institution shall promptly prepare an assessment, approved by the board of directors, or the entity or persons controlling the regulated entity, of the anticipated impact of the closure on consumers that are customers of the credit institution with regard to –

(a) access to financial services, and

(b) range of financial services available to the consumers.

(3) The assessment referred to in paragraph (2) shall include an assessment of the following:

(a) the suitability of alternative arrangements for provision of a financial service provided in the closing branch;

(b) where those alternative arrangements are suitable, the credit institution’s plans for transferring consumers that are customers of the credit institution to those arrangements, including any plans necessary for consumers in vulnerable circumstances.

(4) No later than 2 months prior to the closure of the branch, a credit institution shall -

(a) publish the assessment, as prepared in accordance with paragraph (2) on a website of the regulated entity, and

(b) arrange publication, in the relevant branch and in one or more local newspapers that are local to the relevant branch, of details of the fact that the assessment, as prepared in accordance with paragraph (2), has been carried out, and where a copy of the assessment may be found.

(5) Where a credit institution has closed a branch in the State, the credit institution shall –

(a) within 9 months following the closure, commence an assessment of the impact of the closure on consumers that are customers of the credit institution, where alternative arrangements were made for those consumers, in order to assess those consumers’ satisfaction and experience with regard to the alternative arrangements put in place following the branch closure,

(b) complete the assessment before 15 months have elapsed following closure,

(d) arrange publication, in one or more local newspapers that are local to the relevant branch, of details of the fact that the assessment has been carried out, and where a copy of the assessment may be found, and

(e) re-assess the suitability of the alternative arrangements of the consumers referred to in subparagraph (a) and, where material adverse issues arise with regard to the suitability of those arrangements, rectify those issues.

(6) This Regulation does not apply where the closure, merger or move will be temporary.

(7) In this Regulation, “branch” means a local branch which consumers can attend onsite for the purposes of being provided with financial services.

160. Credit institution to give information and protect consumer interests when significantly amending local branch services

(1) Where a credit institution intends to significantly amend the financial services that it provides in a particular branch in the State by way of ceasing any part of this business, it shall take the following action:

(a) give the 4 month notice required by Regulation 46;

(b) prepare an assessment, approved by the board of directors, or the entity or persons controlling the regulated entity, of the anticipated impact of the intended amendment on consumers that are customers of the credit institution with regard to –

(i) access to financial services, and

(ii) range of financial services available to the consumers.

(2) The assessment referred to in paragraph (1)(b) shall include an assessment of the following:

(a) the suitability of alternative arrangements for provision of the financial service where the regulated entity anticipates that alternative arrangements may be required;

(b) where those alternative arrangements are suitable and may be required, the credit institution’s plans for transferring consumers that are customers of the credit institution to those arrangements, including any specific plans necessary for consumers in vulnerable circumstances.

(3) No later than 2 months prior to the amendment, a credit institution shall –

(a) publish the assessment, as prepared in accordance with paragraph (1)(b) on a website of the regulated entity, and

(b) arrange publication, in the relevant branch and in one or more local newspapers that are local to the relevant branch, of details of the fact that the assessment, as prepared in accordance with paragraph (1)(b), has been carried out, and where a copy of the assessment may be found.

(4) The credit institution shall -

(a) within 9 months following the amendment, commence an assessment of the impact of the amendment on consumers that are customers of the credit institution, where alternative arrangements were made for those consumers, in order to assess those consumers’ satisfaction and experience with regard to the alternative arrangements put in place following the amendment,

(b) complete the assessment before 15 months have elapsed following amendment,

(d) arrange publication, in the relevant branch and in one or more local newspapers that are local to the relevant branch, of details of the fact that the assessment has been carried out, and where a copy of the assessment may be found, and

(e) re-assess the suitability of any alternative arrangements of the consumers referred to in subparagraph (a) and, where material adverse issues arise with regard to the suitability of those arrangements, rectify those issues.

(5) In this Regulation, “branch” has the same meaning given to it in Regulation 159(7).

161. Unsolicited pre-approved credit to personal consumers

(1) A regulated entity shall not recommend or offer unsolicited pre-approved credit to a personal consumer.

(2) In this Regulation, a reference to “credit” shall be taken to include, without limitation, reference to a consumer-hire agreement, hire-purchase agreement and a BNPL agreement.

162. No increase of personal consumer’s credit limit without agreement

A regulated entity may not increase a personal consumer’s credit limit without obtaining the prior written consent of the personal consumer.

163. Separate payment by personal consumers to be permitted in respect of loan charge

Where a regulated entity intends to impose a charge in respect of the provision of a loan to, or arrangement of a loan for, a personal consumer, and it proposes to incorporate this charge into the loan amount advanced to the personal consumer, the regulated entity shall permit the personal consumer to pay this charge separately and to elect not to incorporate the charge into the loan amount.

164. Credit institution not prevented from requiring opening of feeder account

Regulation 90(1) shall not prevent a credit institution from requiring a consumer to open an account, in order to avail of another product, to be used by the consumer for the purpose of facilitating payments in respect of that product (referred to in this Regulation as a “feeder account”), provided that all of the following conditions are met:

(a) the credit institution shall not require the consumer to use the feeder account for purposes other than facilitating payments in respect of the product concerned;

(b) the credit institution shall not apply charges for using the feeder account for the purpose for which it was established;

(c) any additional facilities available on the feeder account, including any subject to a charge, shall be made optional by the credit institution and shall only be activated by the credit institution if requested by the consumer in writing;

(d) the credit institution shall clearly communicate each of the conditions referred to in paragraphs (a) to (c) to the consumer in writing.

165. Steps where offering payment protection insurance with a loan

Where a regulated entity offers payment protection insurance with a loan, the regulated entity shall -

(a) exclude the payment protection insurance premium from the initial repayment estimate of the loan provided to a consumer and separately inform the consumer of the premium amount for such payment protection insurance, and

(b) use separate application forms for each of the payment protection insurance and the loan.

Chapter 6: Additional requirements specific to mortgage business

166. Interpretation (Chapter 6)

In this Chapter, “incentive” in relation to a mortgage, includes short-term cost savings, payment breaks, payment moratoria, cashback offers or other offers, which –

(a) may be advantageous to a personal consumer, as compared with not availing of those offers, for a period less than the term of the mortgage, but

(b) if availed of may, over the whole term of the mortgage, have the consequence of additional costs to a personal consumer as compared with not availing of those offers.

167. Register to be maintained of appointed mortgage intermediaries

A regulated entity shall maintain an up-to-date publicly accessible register, which may be maintained on a website of the regulated entity, of all mortgage intermediaries that it has appointed.

(2) A regulated entity shall provide a confirmation on paper, or on another durable medium, to the Bank, upon termination or cessation of the appointment of a mortgage intermediary, that the intermediary has been removed from the register maintained in accordance with paragraph (1).

168. Personal consumers to be provided certain information with mortgage calculators and approval in principle documents

(1) Where a regulated entity gives information to a personal consumer by means of a mortgage calculator which states, based on information provided by the personal consumer, the required mortgage repayments or the total amount that may be borrowed by way of a mortgage loan, the information shall include –

(a) an indicative figure of the total cost of the mortgage loan that would be payable by the personal consumer, and

(b) information on any online tools to compare mortgages and to calculate mortgage repayments which the Competition and Consumer Protection Commission has made available on its website, together with a hyperlink to any relevant sections of that website.

(2) Where a regulated entity is providing information to a personal consumer with a mortgage calculator with regard to a mortgage loan secured on residential property that may be offered with an incentive, the regulated entity shall provide the following warning statement with the mortgage calculator:

“Warning: You should consider the total cost of a mortgage loan, including any potential additional cost of an incentive offered with it.”

(3) Where a regulated entity is providing a document to a personal consumer containing an estimate of the amount that may be borrowed by the personal consumer by way of a mortgage loan secured on residential property (referred to in this Regulation as an “approval in principle document”), the regulated entity shall provide the following warning statement on the approval in principle document in circumstances where the mortgage loan may be offered with an incentive:

“Warning: You should consider the total cost of the mortgage loan that may be offered to you, including any potential additional cost of an incentive offered with it.”

(4) Where a regulated entity is providing information to a personal consumer with regard to a mortgage loan secured on residential property in either of the circumstances referred to in paragraph (2) or paragraph (3), other than the fact that there is no incentive that is offered with the mortgage loan, the regulated entity shall provide the following warning statement on the approval in principle document or with the mortgage calculator concerned:

“Warning: You should consider the total cost of a mortgage loan.”

(5) Where a regulated entity is providing an approval in principle document to a personal consumer in respect of an interest-only mortgage, the regulated entity shall provide the following warning statement on the approval in principal document:

“Warning: If the value of the capital lump sum or asset sale proceeds anticipated by your proposed repayment plan falls short of what you expect, you may be unable to meet the capital repayment that falls due when you reach the end of your interest-only term. You will be liable for any shortfall.”

169. Information on mortgage switching to be given to personal consumers

A regulated entity shall give personal consumers the following information on its website in relation to mortgage loans provided to personal consumers and shall provide such information on paper to a consumer on request:

(a) a guide to mortgage switching, to include at least the following information:

(i) the switching process that the regulated entity has in place;

(ii) an explanation of the legal process and how the regulated entity will engage with a personal consumer and a personal consumer’s legal representative;

(iii) the regulated entity’s requirements in relation to loan security and insurance policies when switching mortgage;

(iv) a statement that a personal consumer should consider whether, and how, their existing insurance policy may be maintained;

(b) mortgage loan application forms, including any separate application forms applicable to top-up mortgages;

(c) the timelines which apply to the assessment of a mortgage loan application as set out in the regulated entity’s policies and procedures;

(d) the information required from a personal consumer in support of a personal consumer’s mortgage loan application;

(e) a link to the relevant webpage on the Competition and Consumer Protection Commission’s website relating to switching regulated entities providing mortgage loans or changing mortgage type;

(f) a statement that, at the request of a personal consumer or a personal consumer’s legal representative, the regulated entity will provide an indicative comparison of the personal consumer’s existing mortgage interest rate with alternative interest rates that may be offered by the regulated entity.

170. Personal consumers to be provided with indicative comparison on total mortgage interest payable

(1) At the request of a personal consumer or the personal consumer’s legal representative, a regulated entity shall provide to the personal consumer, using reasonable and justifiable assumptions that are clearly stated, an indicative comparison of –

(a) the total interest payable over the remaining term of a mortgage loan provided by that regulated entity to the personal consumer, to

(b) the total interest payable over the term of a new mortgage loan, or under an alternative interest rate, offered by that regulated entity.

(2) Where a regulated entity provides information pursuant to paragraph (1), it shall provide, together with that information, a hyperlink to, or website address of, the relevant webpage on the Competition and Consumer Protection Commission’s website relating to switching regulated entities providing mortgage loans to personal consumers or changing mortgage type.

(3) The information referred to in paragraphs (1) and (2) shall be provided on paper or on another durable medium.

171. Interest rates for mortgages to be published on websites

Where a regulated entity operates a website, it shall publish on its website the interest rates that it has set for the mortgages which are currently available to consumers from that regulated entity.

172. Summary statement on variable mortgage interest rates

(1) A regulated entity shall draw up a summary statement of its policy for setting each variable mortgage interest rate that it offers to a personal consumer.

(2) A regulated entity shall update the summary statement referred to in paragraph (1) when it changes the policy.

(3) Paragraphs (1) and (2) do not apply in respect of a variable mortgage interest rate that is a tracker interest rate.

(4) The summary statement referred to in paragraphs (1) to (3) shall -

(a) identify the factors which may result in changes to the variable interest rate,

(b) outline the criteria and procedures applicable to the setting of the variable interest rate,

(c) specify the circumstances in which the regulated entity applies different approaches to setting the variable interest rate in respect of different cohorts of borrowers and the reasons for the different approach, and

(d) be in such form and contain such content as set out in Schedule 1 to these Regulations.

(5) Where a regulated entity operates a website, it shall ensure that the summary statement that it has produced in accordance with paragraphs (1) to (4) is at all times published and up to date on such website.

(6) A regulated entity that offers a variable mortgage interest rate to a personal consumer shall provide, with the offer document, a copy of the currently applicable summary statement that it has produced in accordance with paragraphs (1) to (4).

(7) Paragraph (6) does not apply in respect of a variable mortgage interest rate that is a tracker interest rate.

(8) Where a regulated entity changes a summary statement that it has produced in accordance with paragraphs (1) to (4), it shall notify, as soon as possible, personal consumers to whose mortgage that updated summary statement applies.

(9) The notification referred to in paragraph (8) shall be made on paper or on another durable medium and shall set out particulars of the changes made to the summary statement, together with relevant details of the position prior to such changes, in order that the consumer can compare the position before and after those changes.

(10) A regulated entity shall make the updated summary statement that it has produced in accordance with paragraphs (1) to (4) available to those personal consumers to whose mortgage the updated summary statement applies.

173. Required information to be included with offer document on mortgage

A regulated entity that offers a mortgage to a personal consumer shall include in the offer document the following information:

(a) the amount of the mortgage;

(b) the interest rate that applies to the mortgage at the date of offer;

(d) where there is a possibility that the interest rate specified in the offer document may not be the interest rate applicable by the time that the mortgage is drawn down, a statement highlighting this possibility;

(e) an outline of the circumstances that would result in the change in interest rate referred to in paragraph (d);

(f) notification of any known upcoming change to the interest rate following drawdown;

(g) the length of time for which the mortgage offer is valid, assuming that all details provided by the personal consumer are correct and do not change.

174. Personal consumers to be provided with redemption figure on existing mortgage

(1) A regulated entity shall provide to a personal consumer or their legal representative, on request, the redemption figure applicable to an existing mortgage provided by the regulated entity to that personal consumer.

(2) The redemption figure referred to in paragraph (1) shall be provided by the regulated entity within 5 working days.

175. Personal consumer’s legal representative to be provided with title deeds within specified timeframe

(1) A regulated entity that has the title deeds to a mortgaged property in its possession or power shall provide those title deeds to the legal representative of a personal consumer that is entitled to access those title deeds on accountable trust receipt within 10 working days of -

(a) receipt of a valid request in writing which satisfies the reasonable requirements of the regulated entity for provision of title deeds made by the legal representative concerned, and

(b) the delivery by the legal representative of any required undertaking or assurance.

(2) Where a regulated entity is required to provide title deeds in accordance with paragraph (1), but has reasonable grounds for failure to provide those title deeds within 10 working days, the time limit referred to in paragraph (1) is extended in accordance with paragraph (3).

(3) A regulated entity to which paragraph (2) applies shall –

(a) make reasonable efforts to provide the title deeds to the legal representative concerned as soon as possible after the time limit referred to in paragraph (1) has expired, and

(b) provide the personal consumer or legal representative concerned, prior to expiry of the time limit referred to in paragraph (1), with –

(i) an explanation of why the request cannot be complied with, and

(ii) an assessment of when the title deeds will be provided.

176. Warning statement for interest-only mortgages

The following warning statement shall be included in the credit agreement documentation of an interest-only mortgage:

177. Information to be provided on incentives and other offers where offered prior to mortgage approval

(1) Where a regulated entity offers an incentive to a personal consumer prior to a mortgage being approved, the regulated entity shall provide the personal consumer with the following information on paper or on another durable medium:

(a) the consequences for the terms and conditions of the mortgage offer, including an indicative cost comparison of the total cost of the mortgage loan, if the incentive is availed of and if it is not;

(b) the period of time for which the incentive will be offered;

(d) any other key information which may be relevant for the personal consumer in deciding whether to avail of the incentive.

(2) The regulated entity shall include with the information provided pursuant to paragraph (1), a statement that the personal consumer may wish to seek independent advice prior to availing of the incentive.

(3) This Regulation does not apply to alternative repayment arrangements within the scope of Chapter 9 of Part 3.

178. Supporting documentation to be obtained prior to providing mortgage

(1) Prior to providing a mortgage loan to a personal consumer, a regulated entity that is a mortgage lender shall either -

(a) obtain all original supporting documentation, including any electronic originals, evidencing the personal consumer’s identity and ability to repay the mortgage, or

(b) obtain from a mortgage intermediary an authenticated declaration that the mortgage intermediary has obtained all such original supporting documentation, including any electronic originals, evidencing the personal consumer’s identity and ability to repay the mortgage.

(2) Obtaining a declaration authenticated by a personal consumer, or a representative of the personal consumer, certifying the personal consumer’s income or ability to repay or both, shall not by itself suffice for the purposes of satisfying the obligation on a regulated entity that is a mortgage lender pursuant to paragraph (1)(a).

(3) Obtaining an authenticated declaration from a mortgage intermediary which is authenticated solely on the basis of the mortgage intermediary having obtained a declaration referred to in paragraph (2), shall not suffice as an authenticated declaration for the purposes of satisfying the obligation on a regulated entity that is a mortgage lender pursuant to paragraph (1)(b).

(4) A mortgage intermediary shall not provide to a regulated entity that is a mortgage lender a declaration authenticated by the mortgage intermediary, for the purposes of evidencing a personal consumer’s identity and ability to repay the mortgage, which is authenticated by the mortgage intermediary solely on the basis of the mortgage intermediary having obtained a declaration referred to in paragraph (2)

179. Process to be followed for dealing with mortgage loan applications by personal consumers

A regulated entity shall –

(a) acknowledge receipt of a complete mortgage loan application within 3 working days of receipt of all documents or items of information necessary for a complete application,

(b) where a mortgage loan application is not complete, acknowledge receipt of the mortgage loan application within 3 working days of receipt and, together with that acknowledgement, provide notification of any documents or items of information required to be submitted to the regulated entity by a personal consumer to complete the application,

(c) inform a personal consumer of the regulated entity’s decision on the personal consumer’s mortgage loan application within 10 working days of receipt of all documents or items of information necessary to assess the application,

(d) if the regulated entity cannot make a decision on whether it will grant or refuse the application within 10 working days of receipt of all documents or items of information necessary to assess the application, inform a personal consumer of the reasons why the regulated entity’s assessment of the application will take longer than 10 working days and the expected timeframe within which a decision will be made, and

(e) provide clear points of contact for any enquiries from a personal consumer who is considering switching their mortgage, and for any other enquiries relating to mortgage lending.

180. Assessing reasonableness (etc.) of information in support of mortgage application

A regulated entity shall –

(a) assess the reasonableness of the information contained in the documentation referred to in Regulation 178(1), including its accuracy, authenticity and veracity, submitted by a personal consumer to the regulated entity in support of a mortgage loan application, and

(b) take all reasonable steps to verify that the documentation referred to in paragraph (a) is authentic.

181. Mortgage lenders to obtain valuation report

(1) A regulated entity that is a mortgage lender shall obtain, in durable medium, an independent valuation report for the property which will act as security for the mortgage, prior to providing a mortgage loan.

(2) It shall suffice for the purposes of paragraph (1), if the regulated entity has obtained such an independent valuation report in compliance with any other applicable law.

182. Affordability assessment - additional test for mortgage products provided to personal consumers

(1) Prior to offering, recommending, arranging or providing a credit product that is a mortgage provided to personal consumers, a regulated entity that is a lender shall include in the affordability assessment, which it is required to carry out pursuant to Regulation 130(1), the application of the test referred to in paragraphs (2) to (7).

(2) The test shall consist of a robust test of the personal consumer’s ability to repay the payment instalments due, over the duration of the mortgage agreement, on the basis of a minimum 2% interest rate increase above the interest rate offered to the personal consumer.

(3) The test referred to in paragraph (2) does not apply to a mortgage where the interest rate applicable to the mortgage is fixed for a period of 5 years or more.

(4) Where the lender offers an introductory interest rate, it shall apply the test referred to in paragraph (2) on either -

(a) the variable interest rate to be applied after the introductory period has ended, if this is known at the time of the offer of the introductory interest rate, or

(b) on the current variable interest rate, if the variable interest rate to be applied after the introductory period has ended could not reasonably be determined at the time of carrying out the test.

(5) Where a credit product is an interest-only mortgage provided on an interest-only basis for the duration of the mortgage term, the test referred to in paragraph (2) shall further include an additional assessment in order to ascertain the personal consumer’s likely ability to repay the principal at the end of the mortgage term.

(6) Where a credit product is an interest-only mortgage provided on an interest-only basis for a duration less than the mortgage term, the test referred to in paragraph (2) shall further include an additional assessment in order to ascertain the personal consumer’s likely ability to repay the capital and interest at the end of the interest-only period.

(7) The additional assessment referred to in paragraph (6) shall consist of an assessment based on a minimum 2% interest rate increase –

(a) above the interest rate applicable at the end of the interest-only period, if this is known at the time of the offer of the interest-only mortgage, or

(b) above the current variable interest rate if the variable interest rate to be applied after the end of the interest-only period could not reasonably be determined at the time of carrying out the assessment.

183. Mortgage intermediaries to provide information for affordability assessment

For the purpose of the affordability assessment referred to in Regulation 130(1), a mortgage intermediary through which a mortgage loan is distributed by a lender to a personal consumer shall provide all relevant information obtained from the personal consumer in accordance with Regulation 16(1) to (10) to the lender to enable an affordability assessment to be carried out by the lender.

184. Revised figures to be provided to personal consumer regarding variable interest rate mortgage

(1) A regulated entity shall, when offering or recommending a variable interest rate mortgage to a personal consumer, provide the personal consumer with figures reflecting the revised periodic repayment instalments following a 2% interest rate increase above the variable interest rate offered.

(2) A regulated entity shall provide the figures referred to in paragraph (1) on paper or on another durable medium.

(3) If the lender offers an introductory interest rate, the revised periodic repayment amount provided in accordance with paragraph (1) shall reflect an increase of 2% on -

(a) the variable interest rate to be applied after the introductory period has expired, or

(b) the current variable interest rate, if the variable interest rate to be applied after the introductory period has expired could not reasonably be determined at the time.

185. Mortgage drawdown – information to be provided to personal consumers

A regulated entity shall -

(a) notify a personal consumer of the documentation required to complete the mortgage drawdown process, and

(b) provide points of contact for any enquiries from a personal consumer regarding matters relating to mortgage lending, including in relation to the mortgage drawdown process.

186. Statements of account on mortgages to provide for additional matters in certain circumstances

(1) In addition to the matters referred to in Regulation 146(1)(a) to (e), in the case of a mortgage with a variable interest rate, excluding a tracker interest rate, the statement of account referred to in Regulation 146(1) shall include the following:

(a) a summary of any other mortgages provided by the regulated entity that could provide savings for the personal consumer at that point in time together with an estimate specified with respect to each such other mortgage of -

(i) the euro amount by which the personal consumer’s individual regular monthly mortgage repayments would decrease based on the other mortgage, and

(ii) the euro amount by which the personal consumer’s total yearly mortgage repayments would decrease based on the other mortgage, being the euro amount specified in point (i) multiplied by 12;

(b) details of how the personal consumer can obtain further information on the mortgages referred to in subparagraph (a);

(c) a statement that the personal consumer should keep their mortgage arrangements under review as there may be other options that could provide savings for the personal consumer;

(d) a hyperlink to, or website address of, the relevant section on the Competition and Consumer Protection Commission’s website relating to switching regulated entities that are lenders or changing mortgage type;

(e) a reminder that the regulated entity’s summary statement produced in accordance with Regulation 172(1) to Regulation 172(4) is available on its website;

(f) if the interest rate applied is based on a ratio of Loan-to-Value (referred to in this Regulation as a “Loan-to-Value interest rate band”), a notification as to whether the mortgage provides for movement by the personal consumer between Loan-to-Value interest rate bands subject to the provision of an up-to-date valuation and any other requirements that may apply to movement between Loan-to-Value interest rate bands by the personal consumer;

(g) if the personal consumer is permitted to move between Loan-to-Value interest rate bands, an invitation to the personal consumer to contact the regulated entity to discuss further;

(h) if the personal consumer is not permitted to move between Loan-to-Value interest rate bands, a notification that the personal consumer may be able to avail of lower Loan-to-Value interest rate bands from another regulated entity based on an up-to-date valuation;

(i) detail on the benefits of early contact with the regulated entity if the personal consumer is in arrears or is at risk of going into arrears.

(2) For the purposes of paragraph (1)(a), the regulated financial service provider shall write the estimate in a font colour other than the predominant font colour used in the statement of account.

(3) Where a regulated entity is required to provide the information referred to in paragraph (1)(a), the regulated entity shall provide the personal consumer with a reminder to consider that information, on paper or on another durable medium, after 4 weeks, but before 8 weeks, have elapsed since the regulated entity provided that information.

(4) Where a regulated entity is required to provide a consumer with a statement including the additional matters referred to in paragraph (1), Regulation 146(2) applies to a statement including those additional matters.

187. Notification of interest rate changes to provide for additional matters in certain circumstances

(1) In the case of an increase in the interest rate on a mortgage with a variable interest rate, excluding a tracker interest rate, a notification required pursuant to Regulation 147 shall also include, in addition to the other matters prescribed by Regulation 147(1) to (3), the following:

(a) the reason, by reference to the summary statement produced in accordance with Regulation 172(1) to (4), for the change in the interest rate;
(b) a summary of other mortgages provided by the regulated entity that could provide savings for the personal consumer at that point in time;
(c) details of where the personal consumer can obtain further information on the mortgages referred to in subparagraph (b);
(d) a statement that the personal consumer should keep their mortgage arrangements under review as there may be other options that could provide savings for the personal consumer;
(e) a hyperlink to, or website address of, the relevant section on the Competition and Consumer Protection Commission’s website relating to switching lenders or changing mortgage type.

(2) In the case of a mortgage interest rate that is a fixed interest rate, a notification required pursuant to Regulation 147 shall also include, in addition to the other matters prescribed by Regulation 147(1) to (3), 60 calendar days prior to the expiry of the fixed interest rate period, the default rate of interest applicable on the expiry of the fixed rate period.

(3) Where the default rate of interest is not a tracker interest rate, a notification required pursuant to Regulation 147 and paragraph (2) of this Regulation shall further include the following:

(a) a summary of other mortgage interest rates provided by the regulated entity that could provide savings for the personal consumer compared to the default rate of interest at the time of notification, together with an estimate specified with respect to each such other mortgage interest rate of -

(i) the euro amount by which the personal consumer’s individual regular monthly mortgage repayments would decrease based on the other mortgage interest rate, and

(ii) the euro amount by which the personal consumer’s total yearly mortgage repayments would decrease based on the other mortgage interest rate, being the euro amount specified in point (i) multiplied by 12;

(b) details of how the personal consumer can obtain further information on the default rate of interest and other mortgage interest rates provided by the regulated entity referred to in subparagraph (a);

(c) a statement that the personal consumer should keep their mortgage arrangements under review as there may be other options that could provide savings for the personal consumer;

(d) a hyperlink to or website address of the relevant section on the Competition and Consumer Protection Commission’s website relating to switching lenders or changing mortgage type;

(e) a reminder that the regulated entity’s summary statement produced in accordance with Regulation 172(1) to Regulation 172(4) is available on its website.

(4) For the purposes of paragraph (3)(a), the regulated entity shall write the estimate in a font colour other than the predominant font colour used in the statement of account.

(5) Where a regulated entity is required to provide the information referred to in paragraph (3)(a), the regulated entity shall provide the personal consumer with a reminder to consider that information, on paper or on another durable medium, after 4 weeks, but before 8 weeks, have elapsed since the regulated entity provided that information.

(6) In the case of an increase in a tracker interest rate, a regulated entity shall provide the notification required pursuant to Regulation 147 as soon as possible, and no later than 10 working days after the regulated entity becomes aware of the change in the interest rate being tracked.

188. Switching from tracker interest rate - personal consumer to be informed

(1) Where a personal consumer has an option under the terms of his or her mortgage to switch from a tracker interest rate to a mortgage interest rate that is not a tracker interest rate (referred to in this Regulation as an “alternative mortgage interest rate”), and notifies the regulated entity that is the lender of his or her intention to exercise that option, that lender shall provide the personal consumer with the following information on paper or on another durable medium:

(a) an indicative comparison of the cost of the personal consumer’s monthly mortgage repayment at their tracker interest rate and each alternative mortgage interest rate available to the personal consumer;

(b) an indicative comparison of the total cost of the mortgage if the personal consumer continues with the tracker interest rate and each alternative mortgage interest rate available to the personal consumer;

(c) information that details and contrasts for the personal consumer how the tracker interest rate is calculated as compared to each alternative mortgage interest rate available to the personal consumer.

(2) For the purposes of paragraph (1) –

(a) any information provided by the regulated entity pursuant to paragraph (1) shall be up to date,

(b) the regulated entity shall provide an indicative time period over which any alternative mortgage interest rate is likely be available to the personal consumer, and

(c) any assumptions used by the regulated entity in respect of the requirements referred to in paragraph (1) shall be reasonable, justifiable and clearly stated.

(3) The following warning statement shall be included by the regulated entity with the information referred to in paragraph (1) if a personal consumer will not be contractually entitled to revert to a tracker interest rate following a decision to switch to an alternative mortgage interest rate available to the personal consumer:

“Warning: If you switch to an alternative mortgage interest rate, you will not be contractually entitled to revert to a tracker interest rate at any time in the future.”

(4) This Regulation does not apply to a regulated entity in respect of a mortgage borrower within the scope of Chapter 9 of Part 3 that is in arrears or pre-arrears within the meaning of that Chapter.

189. Switching from tracker interest rate to fixed interest rate – personal consumer to be notified of tracker margin on expiry of fixed term

(1) Where a personal consumer -

(a) has an option under the terms of his or her mortgage to switch from a tracker interest rate to a fixed interest rate and notifies the regulated entity that is the lender of his or her intention to switch, and

(b) has an entitlement under the terms of his or her mortgage to a tracker interest rate when the fixed interest rate period expires,

the regulated entity shall notify the personal consumer prior to implementing the switch, on paper or on another durable medium, of the tracker margin that will be included within the tracker interest rate available to the personal consumer at the time of expiry of the fixed interest rate period, if the personal consumer chooses to revert to a tracker interest rate.

(2) For the purposes of this Regulation, “tracker margin” means the percentage above which a tracker interest rate must not exceed the reference rate which it tracks as referred to in the terms of the loan.

(3) This Regulation does not apply to a regulated entity in respect of a mortgage borrower within the scope of Chapter 9 of Part 3 that is in arrears or pre-arrears within the meaning of that Chapter.

190. Switching from tracker interest rate – personal consumer to be notified prior to implementing switch

(1) Prior to amending the terms of a personal consumer’s mortgage to switch from a tracker interest rate to a mortgage interest rate that is not a tracker interest rate (referred to in this Regulation as an “alternative mortgage interest rate”), or otherwise implementing such a switch, a regulated entity shall provide the personal consumer with written notice which states that by switching to the alternative mortgage interest rate, the tracker interest rate will or, as applicable, will not, be available following the switch.

(2) Where paragraph (1) applies, a regulated entity shall not implement the switch to an alternative interest rate until it receives written confirmation from the personal consumer that the personal consumer has received the required written notice from the regulated entity.

(3) For the purposes of this Regulation, “tracker margin” has the meaning given to it in Regulation 189(2).

191. Switching from tracker interest rate - personal consumer to be allowed time to consider information

(1) A regulated entity shall allow a personal consumer at least 30 calendar days to consider the information provided in accordance with Regulations 188 to 190.

(2) A regulated entity shall advise the personal consumer of this entitlement on paper or on another durable medium, together with the information provided in accordance with Regulations 188 to 190 and no change shall be effected to the personal consumer’s rate until the expiry of the time period referred to in paragraph (1).

(3) A personal consumer may waive the 30 calendar day period provided for in this Regulation and the chosen alternative relevant rate may be applied by the regulated entity prior to the expiry of this time period, where a regulated entity receives written confirmation from the personal consumer prior to the alternative rate being applied confirming that -

(a) the personal consumer has been provided with the information required under Regulations 188 to 190, and

(b) the personal consumer understands that he or she is waiving the 30 day period available in accordance with paragraph (1) to consider this information.

192. Switching to a fixed interest rate - personal consumers to be notified of loss of discount (etc.)

(1) This Regulation applies where a personal consumer is eligible to switch to a fixed interest rate from a different fixed interest rate or from another type of interest rate, whether a variable interest rate, tracker interest rate or otherwise, pursuant to the terms and conditions of a mortgage, but would revert to that different fixed interest rate, that other type of interest rate, or any interest rate other than a fixed interest rate, on expiry of the fixed interest rate period.

(2) Where this Regulation applies and a personal consumer would lose a discount in respect of charges or any other advantageous term of the mortgage that applied prior to the switch, the regulated entity providing the mortgage shall notify the personal consumer of that fact prior to applying the switch in interest rate to the mortgage concerned.

(3) The requirement to notify pursuant to paragraph (2) does not apply in respect of the unavailability of a tracker interest rate for which a requirement to provide written notice pursuant to Regulation 190 applies and has been discharged.

193. Personal consumer to be provided with information when offering incentive on existing mortgage

(1) Where a regulated entity offers an incentive to a personal consumer in respect of an existing mortgage, the regulated entity shall provide the personal consumer with the following information on paper or on another durable medium:

(a) the consequences for the terms and conditions of the mortgage including an indicative cost comparison of the total cost of the existing mortgage if the incentive is availed of and if it is not;

(b) the period of time for which the incentive will be offered;

(d) any other key information which may be relevant for the personal consumer in deciding whether to avail of the incentive.

(2) A regulated entity shall include with the information provided pursuant to paragraph (1) a statement that the personal consumer may wish to seek independent advice prior to availing of the incentive.

(3) This Regulation does not apply to alternative repayment arrangements within the scope of Chapter 9 of Part 3.

194. Warning statement for certain advertisements

(1) Paragraphs (2) to (7) apply only to advertisements which refer, or relate, to a regulated activity which can be provided, or is available, to a personal consumer.

(2) A regulated entity shall ensure that in an advertisement in which it advertises a residential mortgage involving scheduled repayments, it provides the following warning statement:

“Warning: If you do not keep up your repayments you may lose your home.”

(3) A regulated entity shall ensure that in an advertisement in which it advertises a residential mortgage, including in respect of which it offers an incentive, it provides the following warning statement:

“Warning: You should consider the total cost of the mortgage and any applicable incentive included in a mortgage offer.”

(4) A regulated entity shall ensure that, in an advertisement in which it advertises a variable interest rate mortgage, involving scheduled repayments of interest, where the regulated entity has discretion to vary the interest rate, it provides the following warning statement:

“Warning: Your interest rate may increase and the amount of your mortgage repayments may increase as a result.”

(5) A regulated entity shall ensure that, in an advertisement in which it advertises an interest-only mortgage, it provides the following warning statement:

“Warning: The entire amount that you have borrowed will still be outstanding at the end of the interest-only period.”

(6) A regulated entity shall ensure that, in an advertisement in which it advertises a lifetime mortgage, it provides a recommendation to seek independent legal or financial advice, together with the following warning statements inserting the appropriate information in place of the instruction in square brackets for that purpose:

(a) In respect of a lifetime mortgage where no interest is payable during the term of the mortgage, but interest is charged each month or year and added to the amount owed, with the amount owed plus the added interest then being payable in full in circumstances such as death, or permanent vacation or sale of the mortgaged property:

“Warning: Unlike certain other mortgages where interest is charged on a sum that decreases with time, interest on lifetime mortgages is charged on an increasing sum (made up of the outstanding mortgage and added interest amounts), and therefore the total amount owed can increase quickly. As you are not required make any scheduled repayments, the interest on your mortgage is added to your outstanding debt on a continual basis and you are effectively charged interest on that interest. This is called ‘compound interest’.”;

(c) In respect of a lifetime mortgage with a variable interest rate that does not involve scheduled repayments of interest, where the regulated entity has discretion to vary the interest rate:

“Warning: the rate of interest applied to your loan balance may increase and the amount you owe will increase as a result.”;

(d) In respect of a lifetime mortgage where the debt, if unpaid, could come close to, or equal or exceed the value of the mortgaged residential property:

“Warning: The longer a lifetime mortgage remains unpaid, the more money you will owe and the amount you owe could eventually come close to, equal, or exceed the value of the mortgaged residential property.”;

(e) In respect of a lifetime mortgage where the debt, if unpaid, could come close to or equal, but not exceed, the value of the mortgaged residential property:

(f) In respect of all lifetime mortgages:

“Warning: Purchasing this product may negatively impact on your ability to fund future needs. Before purchasing this product, you should get independent legal or financial advice.”;

(g) In respect of a lifetime mortgage where charges apply to early repayment:

“Warning: You will have to pay charges if you pay off a lifetime mortgage early.”.

Chapter 7: Deposit agents

195. Deposit agents not to retain consumer account passbook

A deposit agent shall not retain in its possession an account passbook of a consumer.

196. Deposit agents not to operate from same premises as deposit broker

A deposit agent shall not operate from the same premises as a deposit broker.

Chapter 8: High Cost credit providers

197. Interpretation (Chapter 8)

(1) In this Chapter –

“existing consumer” means a consumer who has outstanding credit with the high cost credit provider;

“relevant Regulations” means the provisions of these Regulations which apply in accordance with Regulation 6 where a high cost credit provider is engaged in the activity of providing high cost credit.

(2) In this Chapter, “APR”, “consumer”, “credit”, “financial accommodation”, “high cost credit provider”, “high cost credit”, “high cost credit agreement” and “running account” have the meaning given to them in section 2(1) of the Act of 1995.

198. Scope and application (Chapter 8)

(1) This Chapter applies to a high cost credit provider licensed under the Act of 1995 when engaged in the activity of the provision of high cost credit.

(2) With the exception of Regulations 7(3), 8(1)(p), 8(11), 11(3), 13(7), 13(9) and 20(1) of the European Communities (Consumer Credit Agreements) Regulations 2010, Regulations 7, 8, 11, 13 and 20 of the European Communities (Consumer Credit Agreements) Regulations 2010 shall apply in respect of a high cost credit agreement within the scope of the relevant Regulations and involving a total amount of credit of less than €200.

(3) In this Regulation, “total amount of credit” in relation to a high cost credit agreement means the limit of the credit, or the total sum, made available under the high cost credit agreement.

199. Expertise for engaging in high cost credit

A high cost credit provider shall provide appropriate training on an on-going basis to employees and agents concerned with the provision of high cost credit and this shall include, at a minimum, training with respect to the policies and procedures the high cost credit provider has in place to comply with Regulation 204.

200. Unsolicited credit facilities

(1) A high cost credit provider shall not approve the provision of credit to a consumer in advance of an application by the consumer for the credit.

(2) A high cost credit provider may only increase the limit on a consumer’s running account following an application from the consumer for an increase to the limit on the consumer’s running account.

(3) A high cost credit provider shall not make an unsolicited offer of credit to an existing consumer of that high cost credit provider in circumstances where -

(a) the consumer made full repayment within the preceding month of a high cost credit agreement with that high cost credit provider, or

(b) the consumer is party to a high cost credit agreement with the high cost credit provider and the final repayment date of such high cost credit agreement is within the next month.

(4) In this Regulation, “unsolicited offer of credit” means a direct offer to an identified consumer to apply for credit where that offer is made -

(a) otherwise than at the request of the consumer, or

(b) without the prior written consent of the consumer,

but excludes general advertisements for credit to the public.

201. Unsolicited contact

(1) When contacting a consumer, other than an existing consumer, a high cost credit provider may make an unsolicited contact, only if -

(a) the consumer has signed a statement, within the previous 12 months, giving the high cost credit provider permission to make unsolicited contact, or

(b) the consumer is the subject of a referral received by the high cost credit provider from one of the following:

(i) a person authorised by the Bank to provide financial services in the State;

(ii) a person within the same group as the high cost credit provider;

(iii) a solicitor;

(iv) a certified person.

(2) When a high cost credit provider contacts a consumer following a referral referred to in paragraph (1)(b), the high cost credit provider shall inform the consumer that such a referral has been made and ask the consumer for consent to proceed with an unsolicited contact.

(3) A high cost credit provider shall ensure that, when it makes an unsolicited contact on foot of a referral, referred to in paragraph (1)(b), it retains a record of the referral.

(4) An unsolicited contact by a high cost credit provider to a consumer, other than an existing consumer, may only be made between 9.00 a.m. and 9.00 p.m., from Monday to Saturday, excluding public holidays, unless otherwise requested by the consumer.

(5) When making an unsolicited contact in accordance with the relevant Regulations, a high cost credit provider shall immediately carry out the following actions in the following order:

(a) identify himself or herself by name and identify the name of the high cost credit provider on whose behalf the person is contacting the consumer and the commercial purpose of the contact;

(b) inform the consumer that the telephone contact is being recorded, if that is the case;

(c) where relevant, disclose to the consumer, the source of the business lead or referral supporting the personal visit or telephone contact;

(d) confirm that the consumer wishes the personal visit or telephone contact to proceed and if not, end the telephone contact or personal visit immediately.

(6) A high cost credit provider shall adhere to a request from a consumer not to make an unsolicited contact to him or her and this request shall be recorded by the high cost credit provider.

(7) A high cost credit provider shall not reach a binding agreement with a consumer on the basis of unsolicited contact alone.

(8) When contacting an existing consumer for the purposes of sales and marketing, a high cost credit provider may make an unsolicited contact, only if -

(a) the consumer has given prior written consent, that the consumer agrees to be the recipient of such contact, and

(b) the consumer’s consent remains valid.

(9) For the purposes of this Regulation the following definitions apply:

“group” includes a company, any subsidiary and any related undertaking;

“related undertaking” means a related company within the meaning of Part 1 of the Act of 2014;

“subsidiary” means a subsidiary within the meaning of Part 1 of the Act of 2014;

“unsolicited contact” means contact with a consumer without prior written consent by way of personal visit or telephone call, but not including written contact with the consumer or returning a telephone call from a consumer.

202. Communications

(1) A high cost credit provider shall ensure that the level of contact and communications from the high cost credit provider to a consumer is proportionate, reasonable and not excessive.

(2) A high cost credit provider shall ensure that, where it intends to keep a record of a telephone conversation with a consumer, the high cost credit provider informs the consumer, at the outset of the conversation, that the telephone conversation is being recorded.

203. Prohibition on incentivising credit purchases

A high cost credit provider providing goods or services to a consumer, in connection with a high cost credit agreement, shall not offer any discount to a consumer to purchase goods or services on credit, where the discount is only available if the goods or services are purchased by the consumer on credit.

204. Lending policy and procedures

(1) A high cost credit provider shall establish, maintain and adhere to lending policies and procedures, which shall comply with the relevant Regulations, and these lending policies and procedures shall be approved by the board of directors of the high cost credit provider or the entity or persons controlling the high cost credit provider.

(2) The approval of a high cost credit provider’s lending policies and procedures by the board of directors of the high cost credit provider, or the entity or persons controlling the high cost credit provider, shall constitute an affirmation on the part of the board of directors of the high cost credit provider, or the entity or persons controlling the high cost credit provider, that the high cost credit provider's policies and procedures comply with the relevant Regulations and any other legal and regulatory requirements with which the high cost credit provider must comply.

(3) A high cost credit provider shall carry out an annual review to ensure that it is acting in compliance with the lending policies and procedures referred to in paragraph (1) and the high cost credit provider shall report the results of the annual review to the board of directors of the high cost credit provider or the entity or persons controlling the high cost credit provider.

(4) A high cost credit provider’s lending policies and procedures referred to in paragraph (1) shall have the core objectives of ensuring -

(a) consistency of approach by the high cost credit provider in its dealings with consumers, and

(b) that all regulatory requirements as regards suitability of the high cost credit provider’s activities for its consumers and the creditworthiness of the high cost credit provider’s consumers, including the requirements to act in the best interests of consumers, are complied with by the high cost credit provider.

(5) A high cost credit provider’s lending policies and procedures referred to in paragraph (1) shall, at a minimum, include the following information:

(a) the lending policies and procedures that the high cost credit provider will apply when dealing with applications for credit from consumers, including consumers in vulnerable circumstances;

(b) the information to be sought from consumers applying for credit;

(d) the following statement:

“The core objectives of this policy is to ensure that we approach all applications for new and additional credit consistently and to ensure that we meet all of our regulatory requirements as regards suitability of the product and the creditworthiness of consumers and to act in the best interests of consumers.”;

(e) the supports available to employees and agents of the high cost credit provider involved in the consideration of applications for credit;

(f) the safeguards which the high cost credit provider has in place to ensure that section 99 of the Act of 1995 is complied with;

(g) the manner in which the high cost credit provider will maintain a record of the steps taken to assess an application for credit;

(h) the manner in which the high cost credit provider will maintain a record of all lending decisions;

(i) the safeguards which the high cost credit provider has in place to ensure that consumers are not offered or approved unsolicited credit facilities, other than in accordance with the relevant Regulations, by the high cost credit provider or by an employee or agent of the high cost credit provider, in advance of an application for credit by a consumer.

205. Home collections

(1) A high cost credit provider shall ensure that -

(a) any removal of a repayment book from a consumer is properly recorded and that a receipt in a durable medium is issued to the consumer, and

(b) a consumer’s personal details contained in repayment books are regularly confirmed and updated.

(2) If a high cost credit provider provides a collection service, in respect of repayments due under a high cost credit agreement, the high cost credit provider shall, before making any collection of repayments, agree with the consumer the location for such collection, which shall be appropriate and secure.

206. Pre-contract information

A high cost credit provider shall, prior to entering into a high cost credit agreement with a consumer where the APR is in excess of 23 per cent, indicate the high-cost nature of the credit on all documentation in the following form:

“Warning: This is high-cost credit. Consider alternative options before applying for this credit, including alternatives from other lenders regulated by the Central Bank of Ireland.”

207. Provision of information to consumers

A high cost credit provider shall -

(a) include the following statement, in bold type, at, or near, the beginning of any application form or process relating to a high cost credit agreement, regardless of whether the means of application or process is paper based or otherwise:

“If you require this credit to pay for accommodation, food, electricity, heating, medication or other similar costs, please read the below information carefully”,

(b) immediately following the statement referred to in paragraph (a), provide the consumer with the information set out in Schedule 2 to these Regulations in the form prescribed in that Schedule,

(i) presented in a prominent manner,

(ii) in a box,

(iii) in bold type, and

(iv) of a font size that is at least equal to the predominant font size used throughout the document, and

(d) ensure that the information set out in Schedule 2 to these Regulations is presented in a font size that is at least equal to the predominant font size used throughout the document.

208. Information to be provided on guarantee documentation

Where a high cost credit provider offers credit to a consumer subject to provision of a guarantee, the high cost credit provider shall ensure that the guarantee documentation –

(a) clearly specifies the obligations of the guarantor in respect of the credit, and

(b) contains the following warning statement:

“Warning: As a guarantor of this credit, you will have to pay off any outstanding debt amount, the interest and all associated charges up to the level of your guarantee if the borrower does not. Before you sign this guarantee you should get independent legal or financial advice.”.

209. Additional disclosure requirements

(1) In addition to the requirements of Regulation 71(1)(a) to (c), a high cost credit provider shall include a regulatory disclosure statement as to its regulatory status for consumers in its high cost credit agreements, repayment books, authorisation cards, advertisements, catalogues and brochures.

(2) Regulation 71(1)(a) to (c) does not include a high cost credit provider’s text messages.

210. Information notice on website and application form

(1) If a high cost credit provider enters, or offers to enter, into a high cost credit agreement with an APR in excess of 23 per cent, a high cost credit provider shall display the information set out in Schedule 3 to these Regulations in the form prescribed in that Schedule in the following places -

(a) where it operates a website, on the section of the high cost credit provider’s website that relates to high cost credit or other activities for which the high cost credit provider is regulated by the Bank, and

(b) at, or near, the beginning of any application form or process relating to a high cost credit agreement, regardless of whether the means of application or process is paper based or otherwise.

(2) For the purpose of paragraph (1) it shall not be sufficient for the high cost credit provider to provide the information through a link to that information.

211. Information notice at premises

(1) If a high cost credit provider enters, or offers to enter, into a high cost credit agreement with an APR in excess of 23 per cent, a high cost credit provider shall display the information set out in Schedule 3 to these Regulations in every premises from which it engages with consumers in respect of high cost credit activities and such information shall be -

(a) as set out in Schedule 3 to these Regulations,

(b) in poster form,

(d) in typeface that is at least 18 points in size, and

(e) in bold font.

(2) The information provided by a high cost credit provider in accordance with paragraph (1) shall be displayed -

(a) in an area inside the premises from which the high cost credit provider engages in high cost credit activities, and

(b) where it is clearly visible from the location at which consumers would ordinarily deal with the high cost credit provider or an employee or agent of the high cost credit provider.

(3) For the purpose of paragraph (2), where the premises from which the high cost credit provider engages in high cost credit activities -

(a) are not enclosed, or

(b) are of a kind where a consumer can approach the high cost credit provider, or an employee or agent of the high cost credit provider, without going through a door,

the information shall be displayed so that it is clearly visible on a counter, desk, table or other item of furniture at which the high cost credit provider, or an employee or agent of the high cost credit provider would deal with the consumer.

212. Knowing the consumer

Without prejudice to a high cost credit provider’s other legal and regulatory obligations, a high cost credit provider shall ensure that, where a consumer refuses to provide information sought by the high cost credit provider in compliance with the relevant Regulations, the refusal by the consumer is noted on that consumer’s records.

213. Post-contract information

Except in the case of a high cost credit agreement under which repayments are collected from the consumer at an agreed location in accordance with the Act of 1995 and Regulation 205, a high cost credit provider shall issue statements -

(a) at least monthly to consumers who pay weekly, and

(b) at least quarterly to consumers who pay monthly.

214. Provision of information to guarantors

If a high cost credit provider has advanced credit to a consumer subject to a guarantee, the high cost credit provider shall notify the guarantor, on paper or on another durable medium, if -

(a) the terms of the high cost credit agreement change, or

(b) the amount guaranteed by the guarantor is to be increased.

215. Subsequent high cost credit agreements

(1) A high cost credit provider, who has entered into a high cost credit agreement with a consumer which has not been repaid in full, shall before entry into a second or subsequent high cost credit agreement with a consumer provide the consumer with the following information, in a durable medium, aggregated to include the second or subsequent high cost credit agreement in question:

(a) the total number of high cost credit agreements in force between the high cost credit provider and the consumer;

(b) the total balance of credit outstanding between the consumer and the high cost credit provider;

(d) the aggregated repayment amount due from the consumer on the first repayment date subsequent to the new high cost credit agreement.

(2) A high cost credit provider shall make it clear that the information provided in accordance with paragraph (1) relates solely to high cost credit agreements, including the second or subsequent high cost credit agreement in question, between that high cost credit provider and the consumer and that it does not relate to any agreements for the provision of credit from other high cost credit providers or other providers of credit.

(3) Pursuant to a request by a consumer, a high cost credit provider shall provide the information outlined in paragraph (1) free of charge to the following:

(a) the consumer;

(b) with the consumer’s consent, a third party acting on the consumer’s behalf.

(4) Paragraph (3) does not apply to a request made by a consumer less than 4 weeks after a previous request by that consumer which was complied with by the high cost credit provider.

216. Advertising

(1) If a high cost credit provider enters, or offers to enter, into a high cost credit agreement with an APR in excess of 23 per cent, a high cost credit provider shall ensure that all advertisements relating to such high cost credit agreement contain the following warning statement:

“Warning: This is high-cost credit. Consider alternative options before applying for this credit, including alternatives from other lenders regulated by the Central Bank of Ireland.”

(2) A high cost credit provider shall ensure that its marketing strategy -

(a) is fair and reasonable taking into account the particular circumstances of consumers, and

(b) is approved by the board of directors of the high cost credit provider or the entity or persons controlling the high cost credit provider.

(3) The approval of a high cost credit provider’s marketing strategy by the board of directors of the high cost credit provider, or the entity or persons controlling the high cost credit provider, shall constitute an affirmation on the part of the board of directors of the high cost credit provider, or the entity or persons controlling the high cost credit provider, that the high cost credit provider's marketing strategy complies with the relevant Regulations and any other legal and regulatory requirements with which the high cost credit provider must comply.

(4) A high cost credit provider shall carry out an annual review to ensure that it is acting in compliance with its marketing strategy referred to in paragraph (2) and the high cost credit provider shall report the results of the annual review to the board of directors of the high cost credit provider or the entity or persons controlling the high cost credit provider.

217. Consumer records

(1) In addition to the requirements of Regulation 115, a high cost credit provider shall prepare and maintain a copy of any documents provided to the high cost credit provider by the consumer evidencing a consumer’s income and expenditure which are relied upon by the high cost credit provider for the purpose of assessing the consumer’s creditworthiness.

(2) For the purposes of this Regulation, “income” means the income of a consumer before the deduction of tax or other deductions.

218. Provision of records to third parties

(1) Upon receipt of a written request for copies of consumer records, from a third party acting on behalf of a consumer, a high cost credit provider shall furnish the third party with all consumer records referred to in the request within 10 working days, where the consumer has provided written consent.

(2) If any consumer record requested pursuant to paragraph (1) is not available, or has not been retained, the high cost credit provider shall advise the third party that such record is not available, as part of its written response.

Chapter 9: Arrears - Mortgage debt secured by a mortgage borrower’s primary residence

219. Interpretation (Chapter 9)

In this Chapter -

“Act of 2012” means the Personal Insolvency Act 2012 (No. 44 of 2012);

“appeals board” means the appeals board which a regulated entity is required to establish pursuant to Regulation 258;

“arrears” means arrears arising on a mortgage loan account where a mortgage borrower has not made a full repayment of all outstanding amounts due, or only makes a partial repayment of any such amount, as set out in the original mortgage loan contract, by the scheduled due date, and “in arrears” means a situation in which arrears have arisen;

“arrears support unit” means the arrears support unit which a regulated entity is required to establish and maintain pursuant to Regulation 239;

“credit servicing” has the meaning given to it under Part V of the Act of 1997;

“credit servicing activities” has the meaning given to it under Article 3 of Directive (EU) 2021/2167 of the European Parliament and of the Council of 24 November 2021^{^[1]};

“Insolvency Service of Ireland” means the Insolvency Service of Ireland established by the Act of 2012;

“MARP” means the mortgage arrears resolution process which a regulated entity is required to establish and maintain pursuant to Regulation 238;

“mortgage loan” refers only to a mortgage loan of a mortgage borrower which is secured by the mortgage borrower’s primary residence;

“mortgage to rent” means an arrangement whereby the mortgage borrower voluntarily allows the regulated entity to take possession of the primary residence, and the mortgage borrower becomes a tenant in that primary residence, including an arrangement whereby the regulated entity sells the primary residence to a third party and the mortgage borrower is a tenant of that third party;

“not co-operating” has the meaning given to it in Regulation 221;

“personal insolvency practitioner” means a person authorised, under Part 5 of the Act of 2012, to act as a personal insolvency practitioner;

“Personal Insolvency Arrangement” means –

(a) an arrangement entered into by a debtor, or

(b) an arrangement for which a proposal is made, under Chapter 4 of Part 3 of the Act of 2012;

“pre-arrears” means a case in which a mortgage borrower is or is likely to be in financial difficulty, and that arises in any one or more of the following circumstances:

(a) a mortgage borrower contacts the regulated entity to which the mortgage debt is owed to inform it that he or she is in danger of experiencing financial difficulties;

(b) a mortgage borrower contacts the regulated entity to which the mortgage debt is owed to inform it that he or she is concerned about going into mortgage arrears;

(c) a regulated entity to which a mortgage debt is owed by a mortgage borrower establishes that the mortgage borrower is in danger of experiencing financial difficulties that may impact on the mortgage borrower’s ability to meet his or her mortgage debt repayments;

and references to a mortgage borrower “in pre-arrears” shall be construed accordingly;

“primary residence” means a property which is -

(a) the residential property which the mortgage borrower occupies as his or her primary residence in the State, or

(b) a residential property which is the only residential property in the State owned by the mortgage borrower;

“repossession” means any situation where a regulated entity takes possession of a property to which this Chapter applies including, without limitation, by way of voluntary agreement with the mortgage borrower, through abandonment of the property by the mortgage borrower without notifying the regulated entity, or by court order;

“standard financial statement” means the document in the prescribed form referred to in Schedule 4, which complies with the requirements of that Schedule, and which a regulated entity shall use to obtain financial information from a mortgage borrower in order to complete an assessment of that mortgage borrower’s case;

“trading down” means circumstances in which a mortgage borrower sells his or her primary residence and buys a lower value property;

“unsolicited personal visit” means a visit to a mortgage borrower’s primary residence that has not been requested by, or agreed in advance with, the mortgage borrower;

“voluntary sale” means a voluntary sale by the mortgage borrower of his or her primary residence in order to repay part, or all, of the mortgage loan;

“voluntary surrender” means voluntary surrender, by the mortgage borrower, to the regulated entity, of the primary residence.

220. Scope and application (Chapter 9)

(1) Subject to paragraph (2), this Chapter applies to mortgage lending activities, credit servicing and credit servicing activities in respect of mortgage loans, of regulated entities.

(2) This Chapter applies in respect of mortgage borrowers in arrears and mortgage borrowers in pre-arrears, where the mortgage debt is secured by the mortgage borrower’s primary residence.

(3) In the case of joint mortgage borrowers who notify the regulated entity in writing that they have separated or divorced, the regulated entity should treat each mortgage borrower as a single mortgage borrower under this Chapter, except to the extent that an action requires, as a matter of law, the agreement of both mortgage borrowers.

(4) To the extent that this Chapter applies, Regulation 148, Regulations 188 to 190, and Chapter 10 of this Part do not apply.

221. Meaning of not co-operating

(1) In these Regulations, “not co-operating”, in relation to a mortgage borrower not co-operating with a regulated entity, means that condition 1 and condition 2 apply.

(2) In paragraph (1), “condition 1” means that any of the following circumstances apply:

(a) the mortgage borrower fails to make a full and honest disclosure of information to the regulated entity and this information would have a significant impact on the regulated entity’s assessment of the mortgage borrower’s financial situation;

(b) the mortgage borrower fails to provide information relevant to the mortgage borrower’s financial situation within the timeline specified by the regulated entity in accordance with Regulation 251(3);

(i) the mortgage borrower has not entered into an alternative repayment arrangement and during that 3 month period the borrower –

I. has failed to meet his or her mortgage loan repayments in full in accordance with the mortgage loan contract, or

II. has met his or her mortgage loan repayments in full in accordance with the mortgage loan contract but has an arrears balance remaining on the mortgage, or

(ii) the mortgage borrower has entered into an alternative repayment arrangement and during that 3 month period the mortgage borrower has failed to meet his or her repayments in full as specified in the terms of an alternative repayment arrangement,

and,

(iii) during that 3 month period the mortgage borrower -

I. has failed to make contact with, or respond to any communications from, the regulated entity or a third party acting on the regulated entity’s behalf, or

II. has made contact with, or responded to communications from, the regulated entity or a third party acting on the regulated entity’s behalf, but has not engaged in such a way that enables the regulated entity to complete an assessment of the borrower’s circumstances.

(3) In paragraph (1), “condition 2” means that the letter, required pursuant to Regulation 249, has been issued to the mortgage borrower and the mortgage borrower has not carried out the actions specified in that letter.

222. Dedicated person to be appointed for dealing with arrears

A regulated entity shall ensure that within each branch of a regulated entity, or office in the case of a regulated entity that does not operate a branch network, there is appointed at least one person in that branch, or office, with specific responsibility for –

(a) dealing with arrears and pre-arrears cases, and

(b) liaising with the regulated entity’s arrears support unit in respect of these cases.

223. All relevant information to be available prior to communicating with mortgage borrower

Prior to communicating with a mortgage borrower in respect of arrears or pre-arrears, a regulated entity shall ensure that it has available all the relevant information that has been furnished to the regulated entity by the mortgage borrower.

224. Regulated entities to have procedures for dealing with arrears and pre-arrears

(1) A regulated entity shall establish, maintain and adhere to appropriate and effective policies and procedures for the handling of arrears, and pre-arrears cases, including those mortgage borrowers to whom the MARP applies.

(2) The procedures referred to in paragraph (1) shall -

(a) allow for a flexible approach by the regulated entity in the handling of these cases,

(b) be procedures which have the core objective of assisting the mortgage borrower to resolve their financial difficulties,

(d) set out how the arrears support unit will assess cases referred to it, including the types of alternative repayment arrangements or any other relief method that may be offered to mortgage borrowers by the regulated entity.

225. Management information systems to be in place

A regulated entity shall have in place management information systems to keep and maintain information on its dealings with mortgage borrowers in relation to arrears, pre-arrears and MARP cases, including all alternative repayment arrangements with mortgage borrowers.

226. Consumer-facing staff to be provided with training or information as appropriate

(1) A regulated entity shall provide appropriate training to its consumer-facing staff dealing with mortgage borrowers in arrears or in pre-arrears.

(2) With respect to consumer-facing staff other than those referred to in paragraph (1), a regulated entity shall inform such staff of the regulated entity’s policy for dealing with arrears and pre-arrears cases, the relevant contact persons for dealing with such cases and the applicable process for dealing with such cases.

227. Conditions for setting targets or offering incentives to relevant staff

Where a regulated entity sets targets or offers incentives to staff dealing with mortgage borrowers in arrears or pre-arrears, the regulated entity shall ensure that such staff targets or incentives -

(a) do not impair the quality of communication with a mortgage borrower or how the mortgage borrower is treated by the regulated entity, and

(b) take into account compliance with the requirements of this Chapter.

228. Timeline for processing mortgage borrower information requests relating to State support applications

A regulated entity shall process all requests from mortgage borrowers for documentation or other information, for the purposes of applying for State supports in relation to mortgages, within 10 working days of receipt of the request.

229. Mortgage borrower’s nominated third party to be liaised with

(1) At a mortgage borrower’s written request, a regulated entity shall liaise with a third party nominated by the mortgage borrower to act on the mortgage borrower’s behalf in relation to the mortgage borrower’s arrears or pre-arrears case.

(2) For the avoidance of doubt, paragraph (1) does not prohibit a regulated entity from the following:

(a) contacting a mortgage borrower directly in relation to matters other than the mortgage borrower’s arrears or pre-arrears case;

(b) issuing communications required by these Regulations directly to a mortgage borrower.

230. Mortgage borrower’s reasons for missing repayment schedule to be ascertained

As soon as a mortgage borrower is in arrears, a regulated entity shall communicate promptly and clearly with the mortgage borrower to establish the reasons why the repayment schedule required by the mortgage borrower’s mortgage loan contract has not been adhered to by the mortgage borrower.

231. Mortgage borrowers to be encouraged to engage on financial difficulties

(1) A regulated entity shall pro-actively encourage mortgage borrowers to engage with it about financial difficulties which may prevent the mortgage borrower from meeting the mortgage borrower’s mortgage loan repayments.

(2) A regulated entity shall provide a written communication to all mortgage borrowers on at least an annual basis to encourage early contact with the regulated entity if the mortgage borrower is in arrears or is concerned that he or she is in danger of going into arrears.

232. No charges or surcharge interest on arrears where mortgage borrower is cooperating

A regulated entity shall not impose charges, surcharge interest, or both, on arrears arising on a mortgage loan account in arrears to which this Chapter applies, unless the relevant mortgage borrower is not co-operating.

233. Unsolicited personal visits to comply with certain conditions

(1) A regulated entity may make an unsolicited personal visit to a mortgage borrower’s primary residence to discuss the mortgage borrower’s arrears and the steps to deal with the arrears only once in any 6 month period, and only if, in that period, either of the following circumstances apply:

(a) the regulated entity has been unsuccessful in its attempts to contact the mortgage borrower by other means;

(b) the visit is made immediately prior to classifying the mortgage borrower as not co-operating.

(2) Before making an unsolicited personal visit for the purposes of paragraph (1), the regulated entity shall provide the mortgage borrower with at least 5 working days’ notice in writing of –

(a) the regulated entity’s intention to make the visit, and

(b) the timeframe within which it intends to make the visit.

(3) For the purposes of paragraph (2) –

(a) the regulated entity shall not specify a timeframe that exceeds the date that is 15 working days from the date of the notice, and

(b) the regulated entity shall provide notice which -

(i) outlines the importance of engagement between the mortgage borrower and the regulated entity,

(ii) unless the mortgage borrower is already deemed to be not co-operating with the regulated entity, sets out the protections which are not available where a mortgage borrower is not co-operating with the regulated entity to address the mortgage borrower’s arrears,

(iii) explains that the intention of the visit is to discuss the mortgage borrower’s arrears and the steps to deal with the arrears,

(iv) provides the contact details for the regulated entity’s arrears support unit,

(v) where the regulated entity has a local branch, provides the contact details of that branch and offers to discuss the arrears at that branch, and

(vi) states that the mortgage borrower may wish to consider having a third party present when the personal visit takes place, if he or she considers that this would be of assistance to the mortgage borrower.

(4) When carrying out an unsolicited personal visit, a regulated entity shall offer to -

(a) explain the standard financial statement to the mortgage borrower, and

(b) assist the mortgage borrower to complete the standard financial statement.

(5) A regulated entity shall not compel a mortgage borrower to complete a standard financial statement during the course of an unsolicited personal visit.

(6) Regulation 108(1) applies subject to this Regulation.

(7) Paragraph (1) does not prevent a regulated entity from agreeing a further personal visit with the mortgage borrower in compliance with paragraphs (2) to (4) of Regulation 108.

234. Communications to be open to engaging with mortgage borrower

A regulated entity shall use language in communications with a mortgage borrower which indicates a willingness to work with the mortgage borrower to address the arrears or pre-arrears situation.

235. Arrears and pre-arrears meetings with mortgage borrowers not to be in public

A regulated entity shall ensure that all meetings that it conducts with mortgage borrowers in relation to arrears or pre-arrears are not conducted in public.

236. MARP information booklet required

(1) A regulated entity shall prepare and make available to mortgage borrowers an information booklet providing details of its MARP.

(2) A regulated entity shall draft the information booklet in accordance with the requirements of Regulations 47, 48, and 234, and in accordance with any relevant standards prescribed by the Bank pursuant to section 17A(2) of the Central Bank Reform Act 2010 (No. 23 of 2010).

(3) The information booklet shall include the following:

(a) an explanation of the regulated entity’s MARP;

(b) an explanation of the alternative repayment arrangements available to mortgage borrowers including –

(i) an explanation of how these arrangements work,

(ii) the key features of the arrangements, and

(iii) an outline, in general terms, of the regulated entity’s criteria for assessing requests for alternative repayment arrangements;

(c) a statement that the availability of alternative repayment arrangements is subject to an individual assessment of each case and meeting the regulated entity’s criteria;

(d) an explanation of all options offered by the regulated entity for resolution of mortgage arrears other than an alternative repayment arrangement, such as voluntary surrender, voluntary sale, mortgage to rent, trading down, or otherwise, and a statement that the availability of such options is subject to an individual assessment of each case and meeting the regulated entity’s, or a third party’s, criteria;

(e) in circumstances where the regulated entity may require a mortgage borrower to enter into a confidentiality agreement or similar agreement to maintain confidentiality, in circumstances where an alternative repayment arrangement or other arrangement for resolution of mortgage arrears is offered to a mortgage borrower, summary information on the regulated entity’s potential use of such agreements;

(f) an explanation of when a mortgage borrower will be deemed by the regulated entity as not cooperating with the regulated entity;

(g) the implications, for the mortgage borrower, of not co-operating with the regulated entity, which shall include -

(i) that the MARP does not apply if the mortgage borrower is not co-operating,

(ii) information on the imposition of charges, surcharge interest, or both, on arrears arising on a mortgage loan account,

(iii) a warning that the regulated entity may commence legal proceedings for repossession of the property immediately after classifying a mortgage borrower as not co-operating, and

(iv) a warning that not co-operating may impact on a mortgage borrower’s eligibility for a Personal Insolvency Arrangement in accordance with the eligibility criteria set out in the Act of 2012;

(h) information about the potential availability of relevant State supports that provide financial assistance to pay or refund the cost of a mortgage including, where potentially available, information about mortgage interest relief;

(i) a statement reminding those who have purchased payment protection insurance in relation to a mortgage loan account that is in arrears that they may wish to investigate if a claim is possible on that policy;

(j) information explaining how data relating to the mortgage borrower’s arrears will be reported by the regulated entity to the Central Credit Register or any other credit reference agency or credit register, where permitted by contract or required by law;

(k) the regulated entity’s dedicated arrears contact points;

(l) a statement that the mortgage borrower may wish to seek assistance from the MABS, contact details for the MABS national helpline, and the website address of any relevant website operated by the MABS for the purpose of providing assistance to borrowers;

(m) information on the mortgage borrower’s right to consult with a personal insolvency practitioner for the purposes of considering a Personal Insolvency Arrangement, the implications of a Personal Insolvency Arrangement for a mortgage borrower and his or her mortgage loan account, and a reiteration of the warning referred to in subparagraph (g)(iv);

(n) a hyperlink to, or website address of, any website operated by the Insolvency Service of Ireland which provides information to mortgage borrowers on the debt solutions and the associated processes prescribed by the Act of 2012;

(o) a summary of the regulated entity’s policy regarding communications with mortgage borrowers, required in accordance with Regulation 243;

(p) information on how the mortgage borrower may appeal a decision of the regulated entity pursuant to the appeals process which the regulated entity is required to maintain in accordance with Regulation 258, including a description of the process and the timeframe for submitting an appeal;

(q) information on how the mortgage borrower may make a complaint in accordance with the complaints procedure which the regulated entity is required to maintain in accordance with Regulation 260, including a description of the procedure and timeframe for submitting a complaint;

(r) a statement that in the event that legal proceedings are initiated, and the property is repossessed and disposed of, the mortgage borrower will remain liable for any outstanding debt related to the mortgage, including any accrued interest, charges, legal, selling and other related costs, if this is the case.

(4) In this Regulation, “confidentiality agreement” means an agreement whereby the mortgage borrower is required to keep information relating to an alternative repayment arrangement or other option, intended to resolve the arrears situation, confidential.

237. Dedicated webpage to be maintained

Where a regulated entity has or operates a website, a regulated entity shall have a dedicated webpage on its website for mortgage borrowers in, or concerned about, financial difficulties which satisfies the following conditions:

(a) The dedicated webpage shall make available -

(i) the information booklet required by Regulation 236,

(ii) information on the level of charges that may be imposed on mortgage borrowers who are deemed to be not co-operating with the regulated entity,

(iii) a hyperlink to any website operated by the MABS that contains information for mortgage borrowers about taking action to address mortgage arrears,

(iv) the standard financial statement,

(v) a copy of the regulated entity’s guide to completing a standard financial statement or a hyperlink to the Bank’s Consumer Guide to Completing a Standard Financial Statement, and

(vi) a hyperlink to any website operated by the Insolvency Service of Ireland which provides information to mortgage borrowers on the debt solutions and the associated processes prescribed by the Act of 2012;

(b) The dedicated webpage is made easily accessible to any mortgage borrower who accesses the website, and from a prominent hyperlink on the regulated entity’s home page.

238. MARP required

(1) A regulated entity shall establish, maintain and adhere to a mortgage arrears resolution process as its framework for handling cases referred to in Regulation 240.

(2) A regulated entity shall incorporate in its MARP the following steps:

(a) “Step 1: Communication with borrowers”;

(b) “Step 2: Financial information”;

(d) “Step 4: Resolution”.

(3) A regulated entity shall comply with the following requirements under the corresponding step, subject to Regulation 241:

(a) The requirements of “Step 1: Communication with borrowers”, as referred to in paragraph (2)(a), are prescribed by Regulations 242 to 250;

(b) The requirements of “Step 2: Financial information”, as referred to in paragraph (2)(b), are prescribed by Regulation 251;

(d) The requirements of “Step 4: Resolution”, as referred to in paragraph (2)(d), are prescribed by Regulations 253 to 257.

239. Arrears support unit required

A regulated entity shall establish and maintain an arrears support unit, being an adequately staffed centralised unit of the regulated entity dedicated to managing cases to which the regulated entity’s MARP applies.

240. Circumstances in which MARP to be applied

A regulated entity shall apply its MARP in the following cases:

(a) a mortgage borrower’s mortgage loan account has been in arrears for 31 calendar days from the date the arrears first arose;

(b) a pre-arrears case, subject to Regulation 241;

(d) where the term of an alternative repayment arrangement expires.

241. Application of MARP to pre-arrears cases

A regulated entity shall apply its MARP to pre-arrears cases on the following basis:

(a) Only the following requirements of “Step 1: Communication with borrowers”, apply: Regulations 242 to 244, Regulation 249 and Regulation 250;

(b) Regulations 251 to 257 apply in full.

242. Mortgage borrower to be informed of appointment of third party for engaging with mortgage borrower

Where a regulated entity has appointed a third party to engage with a mortgage borrower in relation to a case referred to in Regulation 240, the regulated entity shall inform the mortgage borrower of that fact on paper or on another durable medium and shall explain to the mortgage borrower the role of the third party.

243. Policy on communications with mortgage borrowers required

(1) A regulated entity shall establish, maintain and adhere to a policy regarding the regulated entity’s communications with mortgage borrowers in the cases referred to in Regulation 240 which is consistent with the requirements imposed on regulated entities by Regulation 244.

(2) A regulated entity shall ensure that its policy is approved by its board of directors, or the entity or persons controlling the regulated entity.

244. Standards for communicating with mortgage borrowers

(1) A regulated entity shall ensure that the extent of communications from the regulated entity, including any third party acting on its behalf, to a mortgage borrower in a case referred to in Regulation 240, is proportionate, reasonable and not excessive, taking into account the circumstances of the mortgage borrower, and the principle that unnecessarily frequent communications should not be made;

(2) A regulated entity’s communications with mortgage borrowers in the cases referred to in Regulation 240 shall not be made in an aggressive, intimidating or harassing manner.

(3) A regulated entity shall provide sufficient time to a mortgage borrower, in a case referred to in Regulation 240, to complete an action that the mortgage borrower has committed to before follow up communication is attempted.

(4) For the purposes of paragraph (3), a regulated entity shall provide the mortgage borrower sufficient time having regard to the action that a mortgage borrower has committed to complete and whether he or she may require assistance from a third party in completing the action.

(5) A regulated entity shall take steps to agree with a mortgage borrower, in a case referred to in Regulation 240, on future communication with the mortgage borrower.

245. Mortgage borrower and guarantor to be informed in case of arrears

With regard to a case referred to in Regulation 240(a) where a mortgage borrower’s mortgage loan account is in arrears for 31 calendar days after the arrears first arose, the regulated entity shall, within 3 working days, take the following action:

(a) notify each mortgage borrower and any guarantor of the mortgage loan, unless the mortgage loan contract explicitly prohibits such information to be given to the guarantor, of the status of the account, on paper or on another durable medium;

(b) include the following information in the notification given to a mortgage borrower or guarantor for the purposes of paragraph (a):

(i) the date upon which the mortgage loan account fell into arrears;

(ii) the number and total amount of repayments that have not been made by the mortgage borrower, including partial repayments that have been made;

(iii) the monetary amount that has not been repaid in relation to the arrears as of the date of the notice;

(iv) confirmation that the regulated entity is treating the mortgage borrower’s situation as a case to which it is applying its MARP;

(v) the regulated entity’s dedicated arrears contact points;

(vi) an explanation of the meaning of “not co-operating” under the MARP and, separately, the implications for the mortgage borrower of not co-operating including the following, where applicable:

I. the imposition of charges, surcharge interest, or both, on arrears arising on the mortgage loan account, including details of any such charges or surcharge interest;

II. that the regulated entity may commence legal proceedings for repossession of the property over which the mortgage loan is secured if the mortgage borrower is deemed to be not co-operating with the regulated entity;

III. a warning that not co-operating with the regulated entity may impact on a mortgage borrower’s eligibility for a Personal Insolvency Arrangement in accordance with the Act of 2012;

(vii) a statement reminding those who have purchased payment protection insurance in relation to the mortgage loan account in arrears that they may wish to investigate if a claim is possible on that policy and, if the mortgage borrower has purchased payment protection insurance from that regulated entity in relation to the account in arrears, a statement advising the mortgage borrower of the following:

I. that the mortgage borrower has purchased payment protection insurance;

II. the mortgage borrower’s policy number;

III. that a copy of the mortgage borrower’s policy is available on request from the regulated entity;

(viii) an explanation of how any data relating to the mortgage borrower’s arrears will be reported by the regulated entity to the Central Credit Register, or any other credit reference agency or credit register, where permitted by contract or required by law, and an explanation of the impact on the mortgage borrower’s credit report;

(ix) a hyperlink to, or website address of, any website operated by the Insolvency Service of Ireland which provides information to mortgage borrowers on the debt solutions and the associated processes prescribed by the Act of 2012;

246. MARP information booklet to be provided in pre-arrears case

In the circumstances of a pre-arrears case referred to in Regulation 240(b), in which the mortgage borrower contacts a regulated entity to inform it that either the mortgage borrower is in danger of going into financial difficulties, or the mortgage borrower is concerned about going into mortgage arrears, or both, the regulated entity shall provide the mortgage borrower with the information booklet referred to in Regulation 236.

247. Updated information to be provided where arrears persist

Where the arrears persist in a case referred to in Regulation 240, a regulated entity shall, every 3 months, provide the mortgage borrower with an updated version of the information provided in accordance with Regulations 245(b)(ii), 245(b)(iii) and 245(b)(v), on paper or on another durable medium.

248. Mortgage borrower to be notified of consequences when 3 repayments missed

Where, in a case referred to in Regulation 240, a mortgage borrower fails to make 3 full mortgage loan repayments in accordance with the original mortgage loan contract agreed by the mortgage borrower, and such repayments remain outstanding, and an alternative repayment arrangement has not been put in place, the regulated entity shall notify the mortgage borrower, on paper or on another durable medium, of the following:

(a) an explanation of the meaning of “not co-operating” under the MARP and, separately, the implications for the mortgage borrower of not co-operating including the following, where applicable:

(i) the imposition of charges, surcharge interest, or both, on arrears arising on the mortgage loan account, including details of any such charges or surcharge interest;

(ii) that the regulated entity may commence legal proceedings for repossession of the property over which the mortgage loan is secured if the mortgage borrower is deemed to be not co-operating with the regulated entity, together with an estimate of the costs to the mortgage borrower of such proceedings;

(iii) a warning that not co-operating with the regulated entity may impact on a mortgage borrower’s eligibility for a Personal Insolvency Arrangement in accordance with the Act of 2012;

(b) that taking independent advice in such circumstances is important and that the mortgage borrower could take such advice from his or her local MABS, or from a legal advisor or personal insolvency practitioner;

(c) that irrespective of how the property on which the mortgage loan is secured is repossessed and disposed of, the mortgage borrower will remain liable for the outstanding debt, including any accrued interest, charges, legal, selling and other related costs, if this is the case;

(d) a hyperlink to, or website address of, any website operated by the Insolvency Service of Ireland which provides information to mortgage borrowers on the debt solutions and the associated processes prescribed by the Act of 2012.

249. Letter to be provided to mortgage borrower prior to classification as “not co-operating”

In a case referred to in Regulation 240, a regulated entity shall write a letter to a mortgage borrower, prior to classifying the mortgage borrower as not co-operating with the regulated entity, which shall notify the mortgage borrower of the following:

(a) that he or she will be classified by the regulated entity as not co-operating with the regulated entity if he or she does not undertake the specific actions referred to in paragraph (b), within 20 working days of the date of the letter, with the aim of enabling the regulated entity to complete an assessment of the mortgage borrower’s circumstances;

(b) the specific actions that the regulated entity requires the mortgage borrower to take within the 20 working day period referred to in paragraph (a) in order to avoid being classified by the regulated entity as not co-operating;

(c) the ongoing actions that the regulated entity requires the mortgage borrower to take to avoid being classified by the regulated entity as not co-operating with the regulated entity, including a statement that if any of these ongoing actions are not undertaken at any point in the future, the regulated entity may classify the mortgage borrower as not co-operating without further warning;

(d) the implications of the mortgage borrower not co-operating with the regulated entity, including the following:

(i) that the regulated entity’s MARP will not apply to the mortgage borrower and the protections of the MARP will no longer apply;

(ii) that the regulated entity may commence legal proceedings for repossession of the property on which the mortgage loan is secured immediately after the regulated entity classifies the mortgage borrower as not cooperating with the regulated entity;

(iii) a warning of the impact that classification of the mortgage borrower as not co-operating may have on the mortgage borrower’s eligibility for a Personal Insolvency Arrangement;

(e) that the mortgage borrower may wish to seek independent legal or financial advice, including advice from a personal insolvency practitioner;

(f) that the MABS is also an available advisory service;

(g) the potential for legal proceedings and that, irrespective of how the property on which the mortgage loan is secured is repossessed and disposed of, the mortgage borrower will remain liable for the outstanding debt related to the mortgage, including any accrued interest, charges, legal, selling and other related costs, if this is the case.

250. Mortgage borrower to be informed of certain matters following classification as “not co-operating”

Where, in a case referred to in Regulation 240, a regulated entity has classified a mortgage borrower as not cooperating, following a period whereby the mortgage borrower has been given an opportunity by the regulated entity to co-operate in accordance with the requirements which the regulated entity has set out in the letter referred to in Regulation 249, the regulated entity shall notify the mortgage borrower on paper or on another durable medium that he or she has been classified by the regulated entity as not co-operating and shall inform the mortgage borrower of the following:

(a) that legal proceedings for repossession of the property on which the mortgage loan is secured may commence immediately;

(b) that the regulated entity’s MARP no longer applies to the mortgage borrower and the protections of the regulated entity’s MARP no longer apply;

(c) options that may be available to the mortgage borrower in these circumstances, such as voluntary surrender, trading down, mortgage to rent or voluntary sale, and the implications of each option for the mortgage borrower and his or her mortgage loan account, including the following information:

(i) an estimate of the total amount of costs or the total amount of charges associated with each option presented to the mortgage borrower, where known, and where the total amount associated with an individual option is not known, a list of the individual types of associated costs or charges;

(ii) the requirement to repay outstanding arrears even where the mortgage borrower avails of an option presented, if this is the case;

(iii) the impact on the mortgage borrower’s credit report, as anticipated by the regulated entity, where the mortgage borrower avails of such an option;

(iv) that taking independent advice in relation to the options presented is important and that the mortgage borrower should take such advice from his or her local MABS or from an appropriate alternative;

(d) the mortgage borrower’s right to appeal in writing, setting out the grounds for the appeal, the regulated entity’s decision to classify the mortgage borrower as not co-operating;

(e) the mortgage borrower’s right to consult a personal insolvency practitioner, provided however that the regulated entity shall also inform the mortgage borrower that the regulated entity’s classification of the mortgage borrower as not co-operating may impact on the mortgage borrower’s eligibility for a Personal Insolvency Arrangement.

251. Requirements for obtaining financial information from a mortgage borrower

(1) A regulated entity shall use the standard financial statement to obtain financial information from a mortgage borrower in arrears or in pre-arrears in a case referred to in Regulation 240.

(2) For the purposes of paragraph (1), the regulated entity shall -

(a) provide the mortgage borrower with the standard financial statement at the earliest appropriate opportunity,

(b) offer to assist the mortgage borrower to complete the standard financial statement, and

(c) inform the mortgage borrower that he or she may wish to seek independent advice, in order to assist the mortgage borrower to complete the standard financial statement, from his or her local MABS, from a personal insolvency practitioner, or from an appropriate alternative.

(3) Where a regulated entity requires a mortgage borrower in a case referred to in Regulation 240 to return information, including a standard financial statement, according to a particular timeline, the timeline shall be fair and reasonable and shall provide sufficient time to the mortgage borrower having regard to the type of information requested and having regard to whether the mortgage borrower may need to obtain such information from a third party.

(4) A regulated entity shall ensure that its arrears support unit is provided with the standard financial statement completed by the mortgage borrower, immediately on the regulated entity’s receipt of same, and shall provide a copy of the completed standard financial statement to the mortgage borrower.

(5) Subject to paragraph (6), where in a case referred to in Regulation 240, less than 12 months have elapsed since a completed standard financial statement was last received from the borrower, the regulated entity may deem that standard financial statement last received, together with any information which has changed in that standard financial statement according to the mortgage borrower’s confirmation, to be the completed standard financial statement obtained for the purposes of paragraph (4).

(6) Where in a case referred to in Regulation 240, 12 months or more have elapsed since a completed standard financial statement, excluding any completed standard financial statement deemed as such pursuant to paragraph (5), was last received from the mortgage borrower, the regulated entity shall again comply with the requirements of paragraphs (1) to (4).

(7) This Chapter shall not prevent a regulated entity from either –

(a) requiring a mortgage borrower, in a case referred to in Regulation 240, to provide supporting documentation to corroborate information provided by the mortgage borrower in a standard financial statement or,

(b) requiring a mortgage borrower to provide supporting documentation to corroborate information which has changed in a completed standard financial statement according to the mortgage borrower’s confirmation.

252. Assessment of mortgage borrower case

(1) In a case referred to in Regulation 240, a regulated entity shall, through its arrears support unit –

(a) assess a completed standard financial statement in a timely manner,

(b) examine the case on its individual merits, and

(i) the personal circumstances of the mortgage borrower insofar as relevant to the MARP;

(ii) the overall indebtedness of the mortgage borrower;

(iii) the information provided in the standard financial statement;

(iv) the mortgage borrower’s current and future capacity to repay the mortgage loan;

(v) the mortgage borrower’s history of repayment of the mortgage.

(2) A regulated entity shall provide the mortgage borrower with a summary of the information assessed for the purposes of paragraph (1), in non-technical language.

253. Requirements when considering alternative repayment arrangement options

(1) In order to identify an alternative repayment arrangement that is appropriate and sustainable for a mortgage borrower’s individual circumstances, a regulated entity shall assess all of the options for alternative repayment arrangements offered by that regulated entity.

(2) For the purposes of paragraph (1), the options for alternative repayment arrangements offered by the regulated entity shall be comprised of a suite of alternative repayment arrangements options that is, amongst any other relevant elements, broad enough to meet the needs of the regulated entity’s customers that are mortgage borrowers, in accordance with paragraph (3).

(3) For the purposes of paragraph (2), the alternative repayment arrangements within the suite of alternative repayment arrangement options shall have an objective of, amongst any other relevant objectives –

(a) supporting the regulated entity’s customers that are mortgage borrowers to meet their mortgage obligations, and

(b) addressing those mortgage borrowers’ financial difficulties as effectively as circumstances allow.

(4) The suite of alternative repayment arrangements referred to in paragraph (1) may include the following, amongst any other options for alternative arrangements offered by the regulated entity:

(a) interest only repayments on the mortgage loan for a specified period of time;

(b) permanently reducing the interest rate on the mortgage loan;

(d) fixing the interest rate on the mortgage loan;

(e) an arrangement to pay interest and part of the normal capital amount for a specified period of time;

(f) deferring payment of all or part of the scheduled mortgage loan repayments for a specified period of time;

(g) extending the term of the mortgage;

(h) changing the type of the mortgage;

(i) adding arrears and interest to the principal amount due;

(j) equity participation;

(k) setting aside (“warehousing”) part of the mortgage, including through a split mortgage, where a regulated entity agrees to split a mortgage borrower’s mortgage loan into an affordable mortgage loan, which the mortgage borrower continues to repay, and a remaining balance, which is set aside (i.e. warehoused to a later date);

(l) writing down the capital sum to a specified amount;

(m) any voluntary scheme to which the regulated entity has signed up.

(5) A regulated entity shall document its consideration of each option assessed in accordance with paragraph (1).

(6) Paragraph (5) includes documenting the reasons why -

(a) any option offered to the mortgage borrower is appropriate and sustainable for his or her individual circumstances, and

(b) any option assessed and not offered to the mortgage borrower is not appropriate and not sustainable for his or her individual circumstances.

(7) A regulated entity shall provide the mortgage borrower with a copy of the information documented by the regulated entity in accordance with paragraphs (5) and (6).

(8) In this Regulation, “equity participation” means an arrangement whereby the principal sum due on the primary residence is reduced, provided that a share in the mortgage borrower’s equity in the primary residence is transferred to the regulated entity, or a third party.

254. Requirements when offering alternative repayment arrangements

(1) Where an alternative repayment arrangement is offered by a regulated entity to a mortgage borrower in a case referred to in Regulation 240, the regulated entity shall advise the mortgage borrower to take appropriate independent legal advice, financial advice, or both, and shall provide the mortgage borrower with a clear explanation, on paper or on another durable medium, of how the alternative repayment arrangement works, including the following information:

(a) the reasons why the alternative repayment arrangement offered is considered to be appropriate and sustainable for the mortgage borrower’s individual circumstances as documented by the regulated entity in accordance with Regulation 253(5) and Regulation 253(6), including demonstrating, by reference to the mortgage borrower’s individual circumstances, the advantages of the offer for the mortgage borrower and explaining any disadvantages;

(b) the new mortgage loan repayment amount;

(d) the implications of entering into the alternative repayment arrangement for the mortgage borrower’s existing mortgage loan, including the impact on -

(i) the mortgage loan term,

(ii) the balance outstanding on the mortgage loan account, and

(iii) the existing arrears on the mortgage loan account, if any;

(e) a statement that the alternative repayment arrangement may impact on the mortgage borrower’s mortgage protection insurance cover;

(f) the frequency with which the alternative repayment arrangement will be reviewed by the regulated entity in accordance with Regulation 257(1), the reason for undertaking such reviews and the potential outcome of any such reviews where -

(i) the mortgage borrower’s circumstances which require the alternative repayment arrangement improve,

(ii) the mortgage borrower’s circumstances which require the alternative repayment arrangement disimprove, and

(iii) the mortgage borrower’s circumstances which require the alternative repayment arrangement remain the same;

(g) details of any residual mortgage debt which, at the end of the term of an alternative repayment arrangement, will remain due and owing by the mortgage borrower;

(h) information on how interest will be applied to the mortgage loan account as a result of entering into the alternative repayment arrangement;

(i) information on how the alternative repayment arrangement will be reported by the regulated entity to the Central Credit Register or any other credit reference agency or credit register, and the anticipated impact of entering into this arrangement on the mortgage borrower’s credit report;

(j) the timeframe within which the mortgage borrower is required to accept or decline the offer.

(2) A regulated entity shall not require a mortgage borrower in a case referred to in Regulation 240 to agree to amend his or her mortgage interest rate from a tracker interest rate to an interest rate other than a tracker interest rate, as part of agreeing to any alternative repayment arrangement offered to the mortgage borrower, except in the circumstances referred to in paragraph (3).

(3) Where a regulated entity is considering alternative repayment arrangement options in respect of a mortgage loan with a tracker interest rate in accordance with Regulation 253(1) to Regulation 253(4) and the regulated entity concludes that there is no option which is appropriate and sustainable for the mortgage borrower’s individual circumstances whereby the mortgage borrower may retain the tracker interest rate, the regulated entity may offer the mortgage borrower an alternative repayment arrangement pursuant to which the tracker interest rate is amended to an interest rate other than a tracker interest rate, if that alternative repayment arrangement is a long-term appropriate and sustainable arrangement for the mortgage borrower, and the reasons for same are documented in accordance with Regulation 253(5) and Regulation 253(6).

(4) This Chapter does not prevent a regulated entity agreeing an alternative repayment arrangement with a mortgage borrower for a limited period of time, prior to completing its assessment of the mortgage borrower’s standard financial statement, if a delay in agreeing an alternative repayment arrangement would exacerbate a mortgage borrower’s arrears or, in a pre-arrears case, the mortgage borrower’s relevant financial difficulty or likelihood of financial difficulty.

(5) For the purpose of paragraph (4), “limited period of time” means a period of time sufficient to enable the regulated entity to receive and complete a full review of the standard financial statement.

255. Reasons and additional information to be provided where alternative repayment arrangement refused

(1) Where a regulated entity decides not to offer a mortgage borrower an alternative repayment arrangement in a case referred to in Regulation 240 for any reason, including where the regulated entity concludes that the mortgage borrower’s mortgage is not sustainable for the mortgage borrower’s circumstances and an alternative repayment arrangement is unlikely to be appropriate, the regulated entity shall, within 10 working days of its decision, provide the reasons for that decision to the mortgage borrower on paper or on another durable medium.

(2) In addition to the reasons referred to in paragraph (1), the regulated entity shall inform the borrower of the following:

(a) options available to the mortgage borrower, other than alternative repayment arrangements, such as, where available, voluntary surrender, trading down, mortgage to rent, voluntary sale, or otherwise, and the implications of each option for the mortgage borrower and his or her mortgage loan account including -

(i) an estimate of the total amount of costs or charges associated with each option where known and, where the total amount associated with an individual option is not known, a list of the individual types of costs or charges associated with that option;

(ii) the requirement to repay outstanding arrears even where the borrower avails of such an option, if this is the case,

(iii) the impact on the mortgage borrower’s credit report, as anticipated by the regulated entity, where the mortgage borrower avails of such an option, and

(iv) that it is important for the mortgage borrower to seek independent legal or financial advice in relation to the options presented;

(b) the mortgage borrower’s right to appeal, to the regulated entity’s appeals board, the regulated entity’s decision not to offer an alternative repayment arrangement to the borrower;

(c) that the regulated entity’s MARP no longer applies to the mortgage borrower and that the protections of the regulated entity’s MARP no longer apply;

(d) that the regulated entity may commence legal proceedings after 3 months have elapsed from the date the reasons were provided to the mortgage borrower, or after 8 months have elapsed from the date upon which the arrears first arose, whichever date is the later, and that, irrespective of how the property on which the mortgage borrower’s mortgage loan is secured is repossessed and disposed of, the mortgage borrower will remain liable for the outstanding debt related to the mortgage loan, including any accrued interest, charges, legal, selling and other related costs, if this is the case;

(e) that the mortgage borrower should notify the regulated entity if his or her circumstances requiring consideration of an alternative repayment arrangement improve;

(f) that it is important for the mortgage borrower to seek independent legal or financial advice;

(g) the mortgage borrower’s right to consult with a personal insolvency practitioner;

(h) a hyperlink to, or website address of, any website operated by the Insolvency Service of Ireland which provides information to mortgage borrowers on the debt solutions and the associated processes prescribed by the Act of 2012;

(i) that a copy of the most recent standard financial statement completed by the mortgage borrower can be obtained from the regulated entity on request.

256. Information to be provided where alternative repayment arrangement offered but not agreed by mortgage borrower

If a mortgage borrower does not agree to enter into an alternative repayment arrangement offered by the regulated entity, the regulated entity shall inform the mortgage borrower without delay, on paper or on another durable medium, of the following:

(ii) the requirement to repay outstanding arrears even where the mortgage borrower avails of such an option, if this is the case,

(iii) the impact on the mortgage borrower’s credit report, as anticipated by the regulated entity, where the mortgage borrower avails of such an option, and

(iv) that it is important for the mortgage borrower to seek independent legal or financial advice in relation to the options presented;

(b) the mortgage borrower’s right to appeal, to the regulated entity’s appeals board, the regulated entity’s decision on the alternative repayment arrangement;

(c) that the regulated entity’s MARP no longer applies to the mortgage borrower and that the protections of the regulated entity’s MARP no longer apply;

(d) that the regulated entity may commence legal proceedings after 3 months have elapsed from the date that the information was provided to the mortgage borrower, on paper or on another durable medium, or after 8 months have elapsed from the date upon which the arrears first arose, whichever date is later, and that, irrespective of how the property on which the mortgage borrower’s mortgage loan is secured is repossessed and disposed of, the mortgage borrower will remain liable for the outstanding debt related to the mortgage loan, including any accrued interest, charges, legal, selling and other related costs, if this is the case;

(e) that the mortgage borrower should notify the regulated entity if his or her circumstances requiring consideration of an alternative repayment arrangement improve;

(f) that it is important for the mortgage borrower to seek independent legal or financial advice;

(g) the mortgage borrower’s right to consult with a personal insolvency practitioner;

(h) a hyperlink to or website address of any website operated by the Insolvency Service of Ireland which provides information to mortgage borrowers on debt solutions and the associated processes prescribed by the Act of 2012;

(i) that a copy of the most recent standard financial statement completed by the mortgage borrower may be obtained from the regulated entity on request.

257. Alternative repayment arrangements with mortgage borrowers to be reviewed

(1) A regulated entity shall review the appropriateness of an alternative repayment arrangement for a mortgage borrower at intervals that are appropriate to the type and duration of the arrangement, including at least 30 calendar days prior to the term of the alternative repayment arrangement coming to an end.

(2) In undertaking the review, the regulated entity shall request the mortgage borrower to confirm whether there has been any change in his or her circumstances in the period since the alternative repayment arrangement was put in place or since the last review was conducted.

(3) Subject to paragraph (4), where in response to the request referred to in paragraph (2) –

(a) the mortgage borrower confirms that there has been a change in his or her circumstances, and

(b) less than 12 months have elapsed since a completed standard financial statement was last received from the mortgage borrower,

the regulated entity may deem that standard financial statement last received, together with any information which has changed in that standard financial statement according to the mortgage borrower’s confirmation, to be the completed standard financial statement, and shall consider the appropriateness of the alternative repayment arrangement for the mortgage borrower.

(4) Where, in response to the request referred to in paragraph (2) –

(a) the mortgage borrower confirms that there has been a change in his or her circumstances, and

(b) 12 months or more have elapsed since a completed standard financial statement, excluding any completed standard financial statement deemed as such pursuant to paragraph (3), was last received from the mortgage borrower,

the regulated entity shall again comply with the requirements of Regulation 251(1) to Regulation 251(4) and shall consider the appropriateness of the alternative repayment arrangement for the mortgage borrower.

(5) For the avoidance of doubt, Regulation 251(7) applies to a review referred to in this Regulation.

(6) A regulated entity shall carry out a review of the terms of an alternative repayment arrangement at any time, if requested by a mortgage borrower.

(7) A regulated entity shall ensure that its arrears support unit formally reviews the mortgage borrower’s case, including the standard financial statement, immediately, where a mortgage borrower ceases to adhere to the terms of an alternative repayment arrangement.

258. Appeals process to be in place

(1) A regulated entity shall establish, maintain and adhere to an appeals process for a mortgage borrower to appeal a decision of the regulated entity made in accordance with this Chapter, including the following decisions:

(a) a decision by a regulated entity to offer an alternative repayment arrangement to a mortgage borrower which the borrower does not agree to enter into;

(b) a decision by a regulated entity not to offer an alternative repayment arrangement to a mortgage borrower;

(2) For the purposes of paragraph (1), a regulated entity shall establish an appeals board to consider and determine appeals submitted by mortgage borrowers.

(3) A regulated entity shall establish the appeals board in compliance with the following conditions:

(a) there shall be 3 members of the appeals board;

(b) at least one member of the appeals board shall be a person who meets the following conditions:

(i) the person is an experienced professional, independent of the regulated entity’s management team, including an independent member of the regulated entity’s audit committee or an experienced professional who is independent of the regulated entity, such as a solicitor, barrister, accountant or other experienced professional;

(ii) the person does not have a conflict of interest in respect of cases referred to the appeals board;

(c) any member of the appeals board other than a member referred to in subparagraph (b) is drawn from the regulated entity’s senior employees who have not previously been involved in dealing with the mortgage borrower’s arrears or pre-arrears in respect of the mortgage loan.

(4) A regulated entity shall establish, maintain and adhere to a procedure for the proper handling of appeals.

(5) At a minimum, the procedure referred to in paragraph (4) shall provide for the following:

(a) the appeals board shall only consider written appeals;

(b) the regulated entity shall acknowledge each appeal on paper or on another durable medium within 5 working days of the appeal being received by the regulated entity;

(c) the regulated entity shall provide the mortgage borrower with the name of one or more individuals appointed by the regulated entity to be the mortgage borrower’s point of contact in relation to the appeal, until the appeals board makes a decision in relation to the appeal;

(d) the regulated entity shall provide the mortgage borrower with a regular update, on paper or on another durable medium, on the progress of the appeal, at intervals of not greater than 20 working days, starting from the date on which the appeal was received;

(e) the regulated entity shall consider and adjudicate on an appeal within 40 working days of having received the appeal;

(f) the regulated entity shall, on paper or on another durable medium, within 5 working days of the completion of the consideration of the appeal, notify the mortgage borrower of –

(i) the decision of the appeals board,

(ii) the reasons for that decision, and

(iii) if the regulated entity is making an offer to the mortgage borrower, the terms of that offer;

(g) the regulated entity shall inform the mortgage borrower of his or her right to refer the matter to the Financial Services and Pensions Ombudsman and shall provide the borrower with the contact details of the Financial Services and Pensions Ombudsman.

(6) The procedure referred to in paragraph (4) may provide for any other matter that is relevant or appropriate to the regulated entity’s proper handling of appeals.

(7) A regulated entity shall allow a mortgage borrower at least 20 working days from the date of notification of the decision of the regulated entity following assessment by its arrears support unit, to submit an appeal to the regulated entity for consideration by its appeals board.

259. Appeals to be logged and analysed

(1) A regulated entity shall keep and maintain an up-to-date log of all appeals received from mortgage borrowers.

(2) The log referred to in paragraph (1) shall contain the following:

(a) a summary of the information submitted by the mortgage borrower for the purposes of the appeal considered by the appeals board;

(b) the date the appeal was received;

(d) details of any other relevant correspondence or records, including the grounds on which the appeal was considered by the appeals board;

(e) the steps taken by the appeals board to determine each appeal;

(f) the date the appeal was determined by the appeals board and the decision of the appeals board;

(g) where relevant, the current status of the appeal which has been referred to the Financial Services and Pensions Ombudsman.

(3) A regulated entity shall, at least once every 6 months, undertake an appropriate analysis of the patterns of appeals made to the regulated entity by mortgage borrowers, including analysing whether an appeal indicates an isolated issue or a more widespread issue.

(4) The regulated entity shall ensure that the analysis of patterns of appeals from mortgage borrowers is provided to -

(a) the regulated entity’s arrears support unit,

(b) the regulated entity’s compliance or risk function, and

260. Complaints resolution

(1) For the purposes of this Regulation, “complaint” means a complaint submitted by a mortgage borrower in relation to either of the following:

(a) the regulated entity’s treatment of the mortgage borrower’s case under this Chapter;

(b) the regulated entity’s compliance with the requirements of this Chapter.

(2) A regulated entity shall apply Chapter 12 of Part 2, and Regulation 115(1)(m) to deal with complaints referred to in paragraph (1).

(3) A regulated entity shall ensure that the arrangements which, pursuant to paragraph (2), it is required to have in place in accordance with Regulation 107 to deal with complaints, and which include the analysis of those complaints in accordance with Regulation 107(2)(b), include arrangements for reporting of that analysis, in accordance with Regulation 107(2)(c), to the regulated entity’s arrears support unit.

261. Requirements prior to commencement of legal proceedings for repossession

(1) Subject to paragraph (3), where a mortgage borrower is in arrears, a regulated entity may only commence legal proceedings for repossession of the mortgage borrower’s primary residence where -

(a) the regulated entity has taken reasonable steps in compliance with this Chapter to agree an alternative arrangement with the mortgage borrower, or his or her nominated representative, and

(b) either of the conditions of paragraph (2) are satisfied.

(2) The conditions referred to in paragraph (1)(b) are the following:

(a) the period referred to in Regulation 255(2)(d) or Regulation 256(d), as applicable, has expired;

(b) the mortgage borrower has been classified as not co-operating and the regulated entity has issued the notification required by Regulation 250.

(3) Paragraphs (1) and (2) do not apply to the commencement of legal proceedings by the regulated entity for repossession of the mortgage borrower’s primary residence, where the mortgage borrower is in arrears, in circumstances where –

(a) a fraud has been perpetrated on the regulated entity by the mortgage borrower, or

(b) there has been a breach of contract by the mortgage borrower other than the existence of arrears.

(4) A regulated entity shall notify a mortgage borrower on paper or on another durable medium of the regulated entity’s application to court to repossess the mortgage borrower’s primary residence 7 days before it applies to court to commence those proceedings.

262. Contact to be maintained with mortgage borrower where legal proceedings for repossession commenced

(1) Where the legal proceedings referred to in Regulation 261(1) have commenced, the regulated entity shall continue to make contact periodically with the mortgage borrower, or his or her nominated representative, with the purpose of endeavouring to agree an alternative repayment arrangement.

(2) Where an alternative repayment arrangement is agreed between the regulated entity and the mortgage borrower before a court order enabling repossession in those proceedings is granted, the regulated entity shall seek an order from the court to put the proceedings on hold, for the period during which the mortgage borrower adheres to the terms of the alternative repayment arrangement.

263. Information to be provided following repossession

(1) A regulated entity shall inform a mortgage borrower on paper or on another durable medium when, following repossession, the relevant property is placed on the market for sale, and shall inform the mortgage borrower in the same manner when the property has been sold.

(2) Where, following repossession of the mortgage borrower’s primary residence, a regulated entity has disposed of the relevant property, the regulated entity shall notify the mortgage borrower on paper or on another durable medium, of the following:

(a) the balance of outstanding mortgage debt, if any;

(b) details, including the amount, of any costs arising from the disposal which have been added to the mortgage loan account as debts of the mortgage borrower;

(d) any liability of the mortgage borrower to pay any of the debts or costs referred to subparagraphs (a) to (c).

(3) A regulated entity shall provide the information referred to in paragraph (2) to the mortgage borrower in a timely manner following the completion of the disposal of the property concerned.

264. Records to be kept and maintained

(1) Other than where specified in this Regulation, Chapter 14 of Part 2 of these Regulations does not apply for the purposes of this Chapter.

(2) For the purposes of this Chapter, a regulated entity shall keep and maintain the following:

(a) up-to-date records of –

(i) all steps taken in compliance with this Chapter,

(ii) all considerations taken into account by the regulated entity when making a decision or assessment in compliance with this Chapter,

(iii) the outcome of all assessments and decisions made in compliance with this Chapter, and

(iv) all communications with borrowers in arrears and in pre-arrears;

(v) complaints in respect of which a regulated entity is required to apply Regulation 115(1)(m) in accordance with Regulation 260(2);

(b) up-to-date recordings of all telephone calls made by the regulated entity’s arrears support unit to a mortgage borrower, or from a mortgage borrower to the arrears support unit, in relation to his or her arrears or pre-arrears.

(3) For the purposes of paragraph (2)(b), a regulated entity shall inform a mortgage borrower, at the outset of the conversation, that the telephone conversation is being recorded.

(4) A regulated entity shall maintain the records required by this Regulation and for that purpose shall comply with Regulation 118(1) in relation to those records.

(5) A regulated entity shall provide to the Bank the records required by this Regulation if requested to do so, and for that purpose shall provide those records in accordance with Regulation 118(2) and Regulation 118(3).

(6) Subject to paragraph (7), a regulated entity shall retain records which it is required to keep by this Chapter and which demonstrate compliance with this Chapter, for 6 years.

(7) A regulated entity shall retain all records in respect of a mortgage borrower until a period of 6 years has elapsed following the date on which the mortgage borrower ceases to be a customer of the regulated entity concerned.

Chapter 10: Arrears - debts of personal consumers, other than mortgage debt secured by a mortgage borrower’s primary residence

265. Scope and Application (Chapter 10)

(1) This Chapter applies only to the debts of a personal consumer owed to a regulated entity.

(2) Subject to paragraph (3), and unless otherwise stated, this Chapter applies to mortgage debt and non-mortgage debt.

(3) This Chapter does not apply where Chapter 9 of this Part applies.

266. Legal proceedings

Where legal proceedings have been issued in respect of a relevant debt, Regulation 269 and paragraph (2) of Regulation 272 do not apply in respect of that debt.

267. Policies and procedures for handling arrears to be in place

A regulated entity shall establish, maintain and adhere to appropriate and effective policies and procedures for the handling of arrears cases.

268. Dedicated webpage to be maintained

(1) Where a regulated entity has or operates a website, a regulated entity shall have a dedicated webpage on its website, which makes available the following:

(a) information stating the potential legal and practical effects of not dealing with arrears cases, including the risk of any mortgaged property being repossessed, legal proceedings and additional charges;

(b) relevant contact details of the regulated entity for dealing with arrears cases;

(d) a hyperlink to the MABS website.

(2) The information referred to in paragraph (1) shall be -

(a) easily accessible from a prominent hyperlink on the homepage of each website of a regulated entity, and

(b) provided to a personal consumer in a durable medium on request.

269. Agreed approach on arrears to be sought

In relation to an arrears case, a regulated entity shall seek to agree a reasonable arrangement with a personal consumer, or through a third party nominated by the personal consumer in accordance with Regulation 271, that will assist the personal consumer in resolving the arrears case.

270. Notification of existing arrears and enquiries

Where an account remains in arrears 10 working days following the date upon which arrears first arose, a regulated entity shall, within a further 3 working days, communicate with the personal consumer concerned to notify the person of the existence of the arrears and to make enquiries as to why the arrears have arisen.

271. Personal consumer’s nominated third party to be liaised with

(1) At a personal consumer’s written request, a regulated entity shall liaise with a third party nominated by the personal consumer to act on his or her behalf in relation to the personal consumer’s arrears case.

(2) For the avoidance of doubt, paragraph (1) does not prohibit a regulated entity from -

(a) contacting a personal consumer directly in relation to matters other than the personal consumer’s arrears case;

(b) issuing communications required by these Regulations directly to the personal consumer.

272. Notification of particular information relating to account in arrears

(1) Where an account is in arrears for 31 calendar days after the arrears first arose, the regulated entity shall, within 3 working days, take the following action:

(a) notify the personal consumer and any guarantor of the personal consumer’s loan, on paper or on another durable medium, of the status of the account;

(b) include the following information in the notification referred to in subparagraph (a):

(i) the date upon which the account fell into arrears;

(ii) the number and total amount of repayments that have not been made by the personal consumer, including partial repayments that have been made;

(iii) the monetary amount that has not been repaid in relation to the arrears as of the date of the notice;

(iv) the interest rate applicable to the amount that has not been repaid;

(v) details of any charges that may become payable by the personal consumer arising from the arrears;

(vi) the benefits of the personal consumer engaging with the regulated entity in order to address the arrears;

(vii) relevant contact details of the regulated entity for dealing with arrears;

(viii) the consequences of continuing to not make repayments, including the sharing of data relating to the personal consumer’s arrears with the Central Credit Register or, or where applicable, a credit reference agency;

(ix) where applicable, any legal, contractual and practical impact of continuing to not make repayments on other accounts held by the personal consumer with that regulated entity, including a regulated entity’s entitlement to set-off accounts, where the personal consumer’s existing terms and conditions provide for this possibility;

(x) a statement that the personal consumer may wish to seek assistance from the MABS, the contact details for the MABS national helpline and the link to the MABS website;

(xi) a hyperlink to any website operated by the Insolvency Service of Ireland which provides information to personal consumers on the processes under personal insolvency legislation;

(xii) a statement that personal consumers who have purchased payment protection insurance in relation to an account that is in arrears may wish to investigate if a claim is possible on that policy, and, if the personal consumer has purchased payment protection insurance from that regulated entity in relation to the account in arrears, a statement advising the personal consumer of the following:

I. that the personal consumer has purchased payment protection insurance ;

II. the personal consumer’s policy number;

III. that a copy of the personal consumer’s policy is available on request from the regulated entity.

(2) Where the arrears persist, a regulated entity shall, every 3 months, provide the personal consumer with an updated version of the information provided in accordance with paragraph (1), on paper or on another durable medium.

(3) In this Regulation, “Insolvency Service of Ireland” has the meaning given to it in Regulation 219.

273. Mortgage debt – notification of potential for further proceedings

Where, in respect of a mortgage debt, a personal consumer fails to make 3 full mortgage loan repayments in accordance with the original mortgage loan contract agreed by the personal consumer, and such repayments remain outstanding, and a revised repayment arrangement has not been put in place, the regulated entity shall notify the personal consumer, on paper or on another durable medium, of the following:

(a) the potential for legal proceedings for repossession of the property on which the mortgage loan is secured, together with an estimate of the costs to the personal consumer of such proceedings;

(b) that taking independent advice in such circumstances is important and that the personal consumer should take such advice from his or her local MABS or from an appropriate alternative;

(c) that irrespective of how the property on which the mortgage loan is secured is repossessed and disposed of, the personal consumer will remain liable for the outstanding debt, including any accrued interest, charges, legal, selling and other related costs, if this is the case.

274. Notification to be provided where engaging third party

(1) If a regulated entity intends to appoint a third party to engage on its behalf with a personal consumer in relation to arrears, it shall notify the personal consumer of its intention and explain the role of the third party, on paper or on another durable medium.

(2) The regulated entity shall issue the notification referred to in paragraph (1) to the personal consumer prior to the third party making contact with the personal consumer.

275. Information to be provided where agreement on revised repayment arrangement

Where a regulated entity reaches an agreement on a revised repayment arrangement with a personal consumer, the regulated entity shall provide the personal consumer with the following on paper or on another durable medium within 5 working days of reaching such agreement:

(a) all details of the revised repayment arrangement;

(b) the data relating to the personal consumer’s arrears that will be shared with the Central Credit Register or a credit reference agency.

276. Reasons to be recorded and provided where revised repayment arrangement is rejected

Where an offer to a regulated entity, by a personal consumer, of a revised repayment arrangement, is rejected by the regulated entity, the regulated entity shall maintain a record of its reasons for rejecting the offer and communicate these reasons to the personal consumer on paper or on another durable medium within 10 working days of its decision.

277. Communications policy on arrears to be in place and communications to reflect certain standards

(1) A regulated entity shall produce and adhere to a policy regarding communications with personal consumers in arrears, and the regulated entity shall arrange for this policy to be approved by its board of directors, or the entity or persons controlling the regulated entity.

(2) A regulated entity shall ensure that in its dealings with personal consumers in arrears, or those of a third party acting on the regulated entity’s behalf -

(a) the extent of communications is proportionate, reasonable and not excessive taking into account the circumstances of the personal consumer,

(b) communications with personal consumers are not aggressive, intimidating or harassing, and

(c) personal consumers are given sufficient time to complete an action agreed with the regulated entity to which they have committed, before follow up communication is attempted.

278. Conditions for unsolicited personal visits to personal consumers in relation to arrears (G)

G: GEN (PDF 1.33MB)

(1) A regulated entity may make an unsolicited personal visit to a personal consumer for the purposes of discussing arrears to which this Chapter applies, but only once in any 6 month period, and only where the regulated entity has made unsuccessful attempts to contact the personal consumer by other means.

(2) Before making an unsolicited personal visit for the purposes of paragraph (1), a regulated entity shall provide the personal consumer with at least 5 working days’ notice, in writing, of the regulated entity’s intention to make an unsolicited personal visit.

(3) The notice referred to in paragraph (2) shall –

(a) state the importance of engagement between the personal consumer and the regulated entity,

(b) state the intention of the personal visit to discuss the personal consumer’s arrears and the steps to deal with the arrears,

(c) state the timeframe within which the regulated entity intends to make the visit, not being a timeframe that exceeds the date that is 15 working days from the date of the notice,

(d) where the regulated entity has a local branch, provide the contact details of that branch and offer to discuss the arrears at that branch, and

(e) state that the personal consumer may wish to consider having a third party present when the personal visit takes place, if the personal consumer considers that this would be of assistance to the personal consumer.

(4) Regulation 108(1) applies subject to this Regulation.

(5) Paragraph (1) does not prevent a regulated entity from agreeing a further personal visit with the mortgage borrower in compliance with paragraphs (2) to (4) of Regulation 108.

(6) This Regulation does not apply to an unsolicited personal visit with regard to a hire-purchase agreement or a consumer-hire agreement.

279. Further conditions for unsolicited contact with personal consumers in respect of arrears (G)

G: GEN (PDF 1.33MB)

(1) A regulated entity, shall not, in any calendar month, initiate more than 3 unsolicited communications by way of telephone call to a personal consumer in respect of arrears.

(2) For the purposes of this Regulation, the 3 unsolicited communications do not include the following:

(a) any communication where the telephone call is not answered, including where the response is an engaged tone, and there is no possibility of leaving a recorded message for subsequent playback by the recipient;

(b) any communication that has been requested by, or agreed in advance with, the personal consumer;

(c) any communication to the personal consumer the sole purpose of which is to comply with the requirements of these Regulations or other regulatory requirements.

Chapter 11: Arrears – debts in relation to high cost credit agreements

280. Interpretation (Chapter 11)

(1) In this Chapter –

“arrears” in relation to a high cost credit agreement means where a consumer has not made a full repayment of all outstanding amounts due, or only makes a partial repayment of any such amount, as set out in the original high cost credit agreement, by the scheduled due date;

(2) In this Chapter, “consumer”, “high cost credit provider”, “high cost credit” and “high cost credit agreement” have the meaning given to them in section 2(1) of the Act of 1995.

281. Scope and application (Chapter 11)

This Chapter applies to a high cost credit provider licensed under the Act of 1995 when engaged in the provision of high cost credit.

282. Consumer’s nominated third party to be liaised with

(1) At a consumer’s written request, a high cost credit provider shall liaise with a third party nominated by the consumer to act on the consumer’s behalf in relation to the consumer’s arrears case.

(2) For the avoidance of doubt, paragraph (1) does not prohibit a regulated entity from -

(a) contacting a consumer directly in relation to matters other than the consumer’s arrears case;

(b) issuing communications required by the relevant Regulations directly to the consumer.

283. Agreed approach on arrears to be sought

In relation to an arrears case, a high cost credit provider shall seek to agree a reasonable arrangement with a consumer, or through a third party nominated by the consumer in accordance with Regulation 282, that will assist the consumer in resolving the arrears case.

284. Arrears handling

(1) A high cost credit provider shall establish, maintain and adhere to appropriate and effective policies and procedures for the handling of arrears cases.

(2) A high cost credit provider shall advise a consumer of relevant debt counselling services, and the contact details for such services including the name and address of a local MABS office upon the sixth default or missed payment under a high cost credit agreement, whether consecutive or otherwise, during the currency of a high cost credit agreement.

(3) Paragraph (2) does not apply to circumstances where -

(a) a consumer is unable to make one or more repayments, in accordance with a high cost credit agreement under which repayments are paid by the consumer to the high cost credit provider or his or her representative at any place other than the business premises of the high cost credit provider or the business premises of the supplier of goods or services under the agreement, due to the consumer being unavailable to make the repayment at the usual time and location, where the consumer has contacted the high cost credit provider to re-arrange the repayment,

(b) the high cost credit provider has agreed in writing to the variation of the repayment schedule with the consumer in advance of the repayment falling due, or

(c) the consumer has already paid, by way of pre-payment or previous over-payment, the amount due on the missed payment date.

(4) A high cost credit provider shall maintain a record of such agreement to vary a repayment schedule as referred to in paragraph (3)(b).

285. Debt collection

If a high cost credit provider engages the services of a third party to collect debts on its behalf, the high cost credit provider shall have in place a written contractual arrangement with that third party which ensures that its consumers are treated in accordance with the relevant Regulations and the relevant provisions of the Act of 1995.

Chapter 12: Debt Management Firms

286. Interpretation (Chapter 12)

In this Chapter –

“insolvency option” means a Debt Relief Notice, Debt Settlement Arrangement, Personal Insolvency Arrangement or bankruptcy (each within the meaning of the Personal Insolvency Act 2012 (No. 44 of 2012));

“standard financial statement” means the document in the prescribed form referred to in Schedule 5, which complies with the requirements of that Schedule, and which a debt management firm shall use to obtain financial information from a consumer in order to complete a financial assessment.

287. Scope and application (Chapter 12)

This Chapter applies to the provision of debt management services by a debt management firm.

288. Information about debt management services

In addition to the requirements set out in Regulation 60, prior to entering into an agreement with a consumer for the provision of debt management services, a debt management firm shall provide the consumer with standard information, on paper or on another durable medium, in the form set out in Schedule 6 to these Regulations.

289. Signed agreement to be obtained

(1) A debt management firm shall not provide debt management services to a consumer, or accept payment in respect of those services from a consumer, prior to receiving an agreement that has been signed by the consumer demonstrating the consumer’s acceptance of the terms of that agreement.

(2) The agreement referred to in paragraph (1) shall contain terms that specify the following:

(a) the debt management services that will be provided by the debt management firm;

(b) a clear breakdown of charges payable for those debt management services;

(d) the estimated duration of the agreement;

(e) whether or not the debt management firm is authorised to hold client funds and make payments on behalf of the consumer to the consumer’s creditors;

(f) any charges that will be payable if the consumer terminates the agreement and when, and in what circumstances, those charges will become payable;

(g) if the debt management firm receives a fee, commission, or other reward or remuneration from any person in respect of customer referrals;

(h) if the debt management firm receives a fee, commission, or other reward or remuneration for the provision of information by the debt management firm to any person for identifying potential customers.

(3) The agreement referred to in paragraph (1) shall include the following warning statement:

“Warning: You may still have debt outstanding after completing the debt management process.”

(4) The agreement referred to in paragraph (1) shall be provided to the consumer on paper or on another durable medium.

290. No recommendations, arrangements or assistance for payment of fees or charges by way of credit

A debt management firm shall not –

(a) recommend to a consumer a provider of credit,

(b) arrange for the provision of credit to a consumer, or

for the purpose of the consumer paying fees or charges to the debt management firm for debt management services.

291. Information to be provided where proposed payment of fees or charges by way of credit

Where a consumer proposes to enter into a credit agreement with a provider of credit to pay fees or charges to a debt management firm for debt management services, the debt management firm shall inform the consumer that the credit provided will increase the amount of debt owed by the consumer.

292. No payment of fees, commissions (etc.) for customer referrals or identification

A debt management firm shall not pay a fee, commission, other reward or remuneration to any person in respect of customer referrals to the debt management firm or in respect of information identifying potential customers for the debt management firm.

293. No prevention or obstruction of consumer from directly communicating with free services or creditors

A debt management firm shall not prevent, seek to obstruct, or divert a consumer from communicating directly with -

(a) providers of debt management services that are available free of charge, or

(b) the consumer’s creditors.

294. No standard financial statement to be provided to creditors without prior written consent

A debt management firm shall not provide a consumer’s standard financial statement to a creditor of that consumer unless the debt management firm has received the consumer’s prior written consent to do so.

295. Standard financial statement to be used

In the provision of debt management services, a debt management firm shall use a standard financial statement to obtain a consumer’s financial information required under Regulation 16(1) to (8).

296. Certain specific matters to be assessed and recorded in assessing suitability

(1) When providing debt management services to a consumer, a debt management firm shall, in addition to the requirements of Regulation 17(1) and (2), also assess and record, on paper or on another durable medium, at a minimum:

(a) whether the following options meet the consumer’s needs and objectives:

(i) arrangements with creditors to apply reduced debt repayments for an interim period;

(ii) arrangements with creditors to reschedule debt repayments, including reducing interest rates or extending debt repayments over a longer term;

(iii) arrangements with creditors to restructure outstanding debt, including reducing or waiving the debt obligation;

(iv) insolvency options;

(b) whether the proposed course of action for the consumer is likely to be affordable and suitable for that consumer, taking into account the term of the arrangement and the consumer’s circumstances;

(c) whether the course of action proposed by the debt management firm could impact on the consumer’s eligibility for, or ability to, pursue an insolvency option in the future.

297. Debt management arrangement to be in best interests of consumer

If, in the provision of debt management services, a debt management firm negotiates a debt management arrangement with a consumer’s creditors, it shall ensure that the arrangement is in the best interests of the consumer, taking into account both the short and long term interests of the consumer.

298. Assessing suitability of transactions or series of transactions

(1) Without prejudice to Regulations 17(1), 17(2) and 296, when assessing the suitability of a transaction or series of transactions for a consumer, a debt management firm shall determine that the transaction or series of transactions concerned is not suitable where the transaction or series of transactions is not aligned with the consumer’s attitude to risk, or financial situation, because of the frequency of such transactions or their amount.

(2) Where a determination in accordance with paragraph (1) has been made by the debt management firm, the debt management firm shall advise the consumer of that determination and shall advise the consumer not to proceed with the relevant transaction or series of transactions.

299. Non-application of certain requirements in respect of negotiation without advice

Regulations 296, Regulation 300 and Regulation 301 do not apply where a debt management firm –

(a) has been appointed by the consumer in accordance with the agreement referred to in Regulation 289 for the purpose only of negotiating with that consumer’s creditors for the discharge of their debts, and

(b) does not provide the consumer with debt management services within the meaning of paragraph (a) of the definition of “debt management services” in section 28(1) of the Act of 1997, or any similar activity to that activity as referred to in paragraph (c) of that definition except to the extent that this is solely in connection with the purpose referred to in paragraph (a).

300. Statement of advice to be prepared following suitability assessment

(1) When, following the assessment carried out in accordance with Regulation 296, a debt management firm has identified a proposed course of action for a consumer, it shall prepare a written statement of advice detailing the reasons for proposing the course of action to the consumer, including suitability and affordability for that consumer.

(2) A debt management firm shall include the following notice at the beginning of the statement of advice:

“Important Notice - Statement of Advice

This is an important document which sets out the reasons why the advice recommended is considered suitable, or the most suitable, for your particular needs, objectives and circumstances.”

(3) The reasons set out in the statement of advice shall-

(a) be based on information obtained in accordance with Regulation 16(1) to (8) and Regulation 295, and

(b) detail the options available to the consumer, including a description of how these options operate and of the actual, or potential, legal, contractual and practical consequences for the consumer of pursuing such options.

(4) The description of consequences referred to in paragraph (3)(b) shall include, where relevant, the following:

(a) that the consumer is responsible for making payments to creditors;

(b) that the consumer is responsible for undertaking the actions proposed and whether a third party may be engaged to assist the consumer in any of those actions;

(c) if, because of the nature of the proposed course of action, third party assistance is recommended by the debt management firm and the likely cost of that engagement if known to the debt management firm;

(d) that a creditor is not obliged to accept reduced repayments or, temporarily or otherwise, waive interest or charges;

(e) that a creditor’s debt collection activities may continue even though a debt management firm has been engaged;

(f) that if the consumer cancels payments to their creditors, they will be in breach of their agreement and their account will go into, or further into, arrears;

(g) that reducing their debt repayments may mean it takes longer to pay off their creditors and they may pay more than if they made repayments over a shorter term;

(h) that if the consumer is a property owner, they may be required to re-mortgage their property as part of any arrangement to discharge their debt obligations in whole or in part;

(i) that if the circumstances in subparagraph (h) apply, the consumer’s ability to re-mortgage may be restricted and a mortgage may only be offered at an interest rate higher than their existing mortgage interest rate;

(j) that if the consumer is a property owner, failure to make the negotiated payments under the proposed course of action to creditors could result in the consumer losing their home.

(5) The statement of advice referred to in paragraph (1) shall include the following warning statement:

“Warning: Undertaking the proposed course of action may affect your credit report, which may limit your ability to access credit in the future.”

(6) (a) The statement of advice referred to in paragraph (1) shall detail the following:

(i) the monetary amount of any cost savings that may be achieved by the consumer when compared with the consumer’s existing expenditure as detailed in the information obtained in accordance with Regulation 16(1) to (8) and Regulation 295;

(ii) if the proposed course of action will lead to an increase in the total cost of credit to the consumer under any credit agreement to which the consumer is a party;

(iii) any additional fees or charges that may be incurred by the consumer in pursuing the proposed course of action, including those that will be charged by the debt management firm;

(iv) any fee, commission or monetary benefit receivable by the debt management firm from a third party.

(b) For the purposes of subparagraph (a)(i), a debt management firm shall not consider a reduction in debt repayments as constituting a cost saving where the total amount repayable in respect of that debt is increased or remains the same.

(7) Where the debt management firm assesses that insolvency options are the most suitable course of action for the consumer, the debt management firm shall inform the consumer of how the consumer can obtain further information in connection with considering those options.

(8) A debt management firm shall provide a signed and dated statement of advice to the consumer on paper or on another durable medium.

(9) When providing the statement of advice referred to in paragraph (1), the debt management firm shall also provide to the consumer, on paper or on another durable medium, details of the charges payable to the debt management firm as of the date of that statement.

(10) A debt management firm shall ensure that the notice referred to in paragraph (2) is-

(a) presented in a prominent manner,

(b) in a box,

(d) of a font size that is at least equal to the predominant font size used throughout the statement of advice.

301. Oral explanation to be provided of next steps in relation to statement of advice

When providing the statement of advice in accordance with Regulation 300, or as soon as possible thereafter, a debt management firm shall provide the consumer with an oral explanation of –

(a) the steps that the consumer must take in order to undertake the proposed course of action, and

(b) the matters referred to in Regulation 300(4)(b) and Regulation 300(4)(c).

302. Conditions to begin negotiations with creditors for discharge of debts

(1) Subject to paragraph (3), a debt management firm shall not undertake any action outlined in the statement of advice provided in accordance with Regulation 300 until after-

(a) a period of 5 working days has elapsed following the provision of the statement of advice to the consumer, and

(b) the debt management firm has received the consumer’s consent to begin such actions and the terms upon which such actions will be conducted.

(2) A debt management firm shall commence communicating with a consumer’s creditors in respect of negotiations within 3 working days following the date on which the conditions referred to in paragraph (1) are met.

(3) Where Regulation 297 applies, the debt management firm shall commence communicating with the consumer’s creditors in respect of negotiations within 3 working days of the consumer providing the debt management firm with the information required in accordance with Regulation 16(1) to (8) and Regulation 295.

303. Notification to be provided of outcome of negotiations with each creditor

(1) A debt management firm shall provide a separate notification to a consumer, on paper or on another durable medium, of the outcome of negotiations with each creditor of the consumer for the discharge of that consumer’s debts within 3 working days of confirmation by that creditor to the debt management firm of the outcome.

(2) Where in connection with negotiations with a creditor for the discharge of a consumer’s debt, a creditor has imposed a shorter timeframe for acceptance of a negotiated outcome than 3 working days, the notification referred to in paragraph (1) shall be provided as soon as reasonably practicable before the expiry of that timeframe.

(3) The notification referred to in paragraph (1) shall-

(a) where relevant, highlight any variations from the proposed course of action outlined in Regulation 300,

(b) detail the reasons that the negotiated outcome is considered by the debt management firm to be suitable and affordable for that consumer, and

(i) the steps that the consumer must take in order to comply with the terms negotiated with a creditor and the timeline imposed by the creditor for complying with these steps;

(ii) the circumstances in which the consumer can withdraw from the arrangements proposed under the negotiated outcome and the steps required to withdraw from those arrangements;

(iii) any charges which may become payable by the consumer if, following acceptance of those arrangements, the consumer withdraws from those arrangements;

(iv) any penalties that may be applied by the creditor if the consumer fails to meet the terms of the arrangements proposed under the negotiated outcome.

(4) A debt management firm shall notify a consumer of the details of any creditor of the consumer that has declined to engage with the debt management firm within 3 working days of the creditor so declining.

304. No agreement to negotiated outcome for discharge of debts without prior written agreement of consumer

(1) A debt management firm shall not communicate to a creditor of a consumer that the consumer agrees to the outcome negotiated with that creditor for the discharge of that consumer’s debts without the prior written agreement of the consumer.

(2) A debt management firm shall keep a copy of the agreement referred to in paragraph (1).

305. Regular updates on status of negotiations to be provided

(1) While a debt management firm is engaged in ongoing negotiations with a consumer’s creditors for the discharge of that consumer’s debts, it shall provide details on paper or on another durable medium to the consumer, at least every 30 calendar days, on the status of the negotiations.

(2) The details referred to in paragraph (1) shall be provided until the provision of services in relation to negotiating with the consumer’s creditors has concluded.

306. Statement of activities and fees to be provided where services provided over more than 6 months

(1) Where a debt management firm provides debt management services to a consumer over a period longer than 6 months, it shall provide a statement to the consumer at least every 6 months, on paper or on another durable medium.

(2) The statement provided in accordance with paragraph (1) shall include the following in respect of the period to which that statement relates, where relevant:

(a) details of the services provided and actions completed by the debt management firm;

(b) fees charged by the debt management firm in accordance with the agreement between the consumer and the debt management firm required pursuant to Regulation 289.

OJ L 438, 8.12.2021, p. 1. ↑

Consumer Protection Code

Part 3: Consumer Banking, Credit, Arrears and Certain Other Financial Arrangements

Chapter 1: Knowing the consumer and suitability – additional requirements

130. Affordability assessment to be carried out

131. Lenders to carry out further affordability and suitability assessment

Chapter 2: Additional information requirements

132. Interpretation (Chapter 2)

133. Requirement for publishing interest rates

134. Personal consumers to receive explanation of consequences of missing scheduled repayments

135. Reasons to be provided for not approving personal consumer credit application

136. Information to be provided to personal consumers regarding early redemption charge

137. Information to be provided on guarantee documentation where offering credit to personal consumers

138. Indicative comparison of total cost to be provided to personal consumers when consolidating loans

139. Information to be provided to personal consumers on lifetime mortgages

140. Information to be provided to personal consumers on home reversion agreements

141. Conditions for reliance on assumptions in providing information pursuant to Regulations 139 and 140

142. Importance of obtaining independent legal and financial advice to be notified with lifetime mortgages and home reversion agreements

143. Warning statements to be included with information on lifetime mortgages and home reversion agreements

144. Credit institutions to provide information on term or notice deposit accounts

145. Credit institutions to provide information on fixed term deposits

146. Providers of loan accounts to provide statements to personal consumers

147. Providers of loans to notify personal consumers of interest rate changes

Chapter 3: Additional post-sale information requirements

148. Guarantor of personal consumer credit to be notified

Chapter 4: Advertisements

149. Scope and application (Chapter 4)

150. Referring to annual percentage rate

151. Advertising term loans and other arrangements while specifying annual percentage rate and term

152. Fixed-rate loans and other arrangements – warning statement regarding early payment

153. Personal lending and other arrangements - warning statement regarding failure to make repayments

154. Credit enabling consolidation of debts – required information

155. Displaying interest rate for savings or deposit account

156. Annual equivalent rates

157. Home reversion agreements

Chapter 5: Additional miscellaneous business requirements for credit institutions and provision of credit

158. Credit institutions to follow timelines for crediting funds to term or notice deposit accounts

159. Credit institution to give information and protect consumer interests when closing, merging or moving local branches (G)

160. Credit institution to give information and protect consumer interests when significantly amending local branch services

161. Unsolicited pre-approved credit to personal consumers

162. No increase of personal consumer’s credit limit without agreement

163. Separate payment by personal consumers to be permitted in respect of loan charge

164. Credit institution not prevented from requiring opening of feeder account

165. Steps where offering payment protection insurance with a loan

Chapter 6: Additional requirements specific to mortgage business

166. Interpretation (Chapter 6)

167. Register to be maintained of appointed mortgage intermediaries

168. Personal consumers to be provided certain information with mortgage calculators and approval in principle documents

169. Information on mortgage switching to be given to personal consumers

170. Personal consumers to be provided with indicative comparison on total mortgage interest payable

171. Interest rates for mortgages to be published on websites

172. Summary statement on variable mortgage interest rates

173. Required information to be included with offer document on mortgage

174. Personal consumers to be provided with redemption figure on existing mortgage

175. Personal consumer’s legal representative to be provided with title deeds within specified timeframe

176. Warning statement for interest-only mortgages

177. Information to be provided on incentives and other offers where offered prior to mortgage approval

178. Supporting documentation to be obtained prior to providing mortgage

179. Process to be followed for dealing with mortgage loan applications by personal consumers

180. Assessing reasonableness (etc.) of information in support of mortgage application

181. Mortgage lenders to obtain valuation report

182. Affordability assessment - additional test for mortgage products provided to personal consumers

183. Mortgage intermediaries to provide information for affordability assessment

184. Revised figures to be provided to personal consumer regarding variable interest rate mortgage

185. Mortgage drawdown – information to be provided to personal consumers

186. Statements of account on mortgages to provide for additional matters in certain circumstances

187. Notification of interest rate changes to provide for additional matters in certain circumstances

188. Switching from tracker interest rate - personal consumer to be informed

189. Switching from tracker interest rate to fixed interest rate – personal consumer to be notified of tracker margin on expiry of fixed term

190. Switching from tracker interest rate – personal consumer to be notified prior to implementing switch

191. Switching from tracker interest rate - personal consumer to be allowed time to consider information

192. Switching to a fixed interest rate - personal consumers to be notified of loss of discount (etc.)

193. Personal consumer to be provided with information when offering incentive on existing mortgage

194. Warning statement for certain advertisements

Chapter 7: Deposit agents

195. Deposit agents not to retain consumer account passbook

196. Deposit agents not to operate from same premises as deposit broker

Chapter 8: High Cost credit providers

197. Interpretation (Chapter 8)

198. Scope and application (Chapter 8)

199. Expertise for engaging in high cost credit