Minister McGrath questions Central Bank on vulture fund rates

[NoRegretsCoyote]

Interesting story in the Irish Times today on this.

Michael McGrath awaits answers from regulator about concerns over overpriced ‘vulture fund’ mortgages

Michael McGrath, the Minister for Finance, wants a formal response from the Central Bank to a letter his officials wrote to the regulator asking whether it needs more legal powers to help tens of thousands of mortgage holders who are trapped paying high interest rates to overseas funds.
.......The Minister says he is “concerned” for such mortgage holders, many of whom are trapped in rates that are double the market average and can be as high as 7 per cent. .......In response to calls for it to introduce interest rate caps, the Central Bank has repeatedly said it has no legal mandate to interfere in the setting of interest rates by lenders.

 

[Paul F]

A related thread for those who are interested:

Could a borrower challenge mortgage rates in a variable rate contract as unfairly high?

No!!! Why not? While it's unlikely that any lender would charge, say, 15% right now, I'm not aware of anything to stop them (other than fixed rate and tracker loan agreements). https://www.oireachtas.ie/en/debates/question/2022-02-22/58/ The price lenders charge for their loans is a commercial...

www.askaboutmoney.com

 

[CarrotStick]

At last, some action by Government about this important issue. An interest variation clause within a mortgage loan agreement or indeed any credit agreement, that allows a provider to vary its interest rates at it’s complete discretion (without setting any parameters whatsoever) is in my opinion, an unfair term and open to challenge. The CBI are tasked with identifying unfair terms in all credit agreements with consumers. They had better start getting to work!