Supreme Court rules that a loan from an unregulated lender is still enforceable

Sensible judgement

My summary
Kelly borrowed money from Bank of Ireland
NAMA acquired the loan from BoI
NAMA sold the loan to Cave Projects in 2013

Cave Projects replace BoI and NAMA in proceedings to recover the loan.

In Sept 2023 the Central Bank issued a notice to say that Cave Projects was not authorised as a credit servicer.



Mr Kelly alleged the Court of Appeal erred by refusing to admit the Central Bank statement.

He claimed the statement rendered enforcement of the debt contract substantively illegal as it said Cave Projects was not authorised by the regulator.

Cave Projects does not accept it was carrying on the business of credit servicing but argued that even if it was, this would not vitiate the €11.4 million judgment or its entitlement to sue over it.

On Tuesday, Mr Justice Gerard Hogan said it is important to state that the Central Bank’s notice “did not change the legal position, but simply recorded the opinion of the regulator”.

Its up to the Central Bank to sort out the unauthorised credit servicing issue , from the Judgement that issue was never raised in the High Court .
Yet another mess leftover from the Celtic Tiger days of crazy lending .
All Cave have to do is outsource the servicing of the Loan to a regulated body here .