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Time to clip the wings of the vulture funds once and for all - Pearse Doherty TD

21 May, 2019 - by Pearse Doherty TD

Sinn Féin Finance Spokesperson Pearse Doherty TD has told the Government it is time to clip the wings of vulture funds once and for all and that the attitude of these funds towards ordinary people is “utterly disgraceful”.

The Donegal TD was speaking as he received further information that vulture funds are demanding full payment of loans from borrowers within seven days of notice, and failing to provide any alternative arrangements.

Speaking at Leaders’ Questions today, Teachta Doherty said;

“The government has designed a tax system that incentivises vulture funds to buy loans, which banks are more than happy to offload; despite the dire consequences for borrowers.

“Ulster Bank has had a particular fondness for selling off these loans to vulture funds. Last year it sold a portfolio of loans known as ‘Project Scariff’ worth €1.6 billion to a vulture fund called Promontoria Scariff.

“That portfolio consisted of approximately 3,600 owner-occupier loans and mortgages secured to 2,900 buy-to-let properties.

“A company called ‘Cabot Financial Ireland’ is administering these loans and its actions to date in dealing with borrowers.

“I have received correspondence from two such borrowers in recent days Taoiseach who are behind by tiny amounts - around €3,000 in each case, which state that they are now demanding full payment - not in respect of the arrears - but full payment - of their loans within seven days. 

“One week Taoiseach; this is utterly disgraceful.

“They are not facilitating any arrangements with the borrowers. The tenants in these properties will be given a notice to quit.

“They will need somewhere to live. It is utter chaos and it runs rough shod over any level of common decency.

“All of this is a direct consequence of government policy and the government rolling out of the red carpet.

“These leeches can do this and get away with it because they know that Fine Gael will do nothing to stop them.

“It is precisely because of the actions of Cabot in this instance that people fear vulture funds and fear for their homes.

“Moving to the final option without any genuine engagement with borrowers is utterly disgraceful.

“Taoiseach, do you stand over this practice? Now time to clip the wings of these vultures once and for all.”

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