Government Agreement on Vulture Fund Directive ‘a slap in the face’ to people – Chris MacManus MEP

Sinn Féin MEP Chris MacManus has slammed the government for signing off on the Vulture Fund Directive at the EU Council this week. The Midlands Northwest MEP said the move was  ‘a slap in the face for struggling homeowners given that the government has expressed concern itself that the directive will weaken what little consumer protections are in place’.

MEP MacManus said:

“We learned today that mortgages worth hundreds of millions of euros, the majority family homes, are being sold by a State owned bank, Permanent TSB, to a vulture fund.  This comes only a day after the government signed off on the EU’s Directive on credit servicers and credit purchasers – the so called Vulture Funds Directive”.

“The support for this Vulture Funds Directive comes despite the government briefing Irish MEPs that they fear the Directive will reduce consumer protection for Irish families who find themselves thrown to the vultures. The government recognises that the Directive, which overrules Irish law, does not regulate the owners of credit. It only regulates the middlemen of credit. This approach was tried in Ireland before the previous government had to act to regulate the owners too”.

“The sale of a loan book by Permanent TSB today marks a change in vulture fund strategy with the buyer immediately stating they will securitise, in other words, sell the loans on. This is a farce and makes a mockery of accountability and transparency for the families finding themselves sold to a vulture and their house commodified as part of a bundle of loans to be speculated upon. The culture of vulture sales fostered by Fine Gael and Fianna Fáil is appalling”. 

“Their support for an EU Directive they recognise as a threat to the rights of consumers, but to the benefit of vultures is just like the Permanent TSB sale – a new low”. ENDS