Hi Folks,
Just in case anyone here has had any dealings with either of the above, I came accross this on Friday:
(can't post the URL as i'm new here, but it's in their press release area)
Seems like the CBI have taken a drastic enogh step for reasons best known to themselves!
Statement – Smart Resolutions
12 December 2014
The Central Bank of Ireland has secured High Court enforcement orders against two Co Tipperary based firms, restraining them from unauthorisedprovision of debt management services and requiring the preservation of certain records and information.
The enforcement orders were granted against:
Enforcement orders are one of a suite of enhanced Central Bank powers introduced in 2013. Section 52 of the Central Bank (Supervision and Enforcement) Act provides that where the Central Bank believes a person has engaged, or is about to engage, in conduct that contravenes financial services legislation, an ex parte application can be made to the High Court for an order restraining that person from engaging in such conduct.
Authorisation of Debt Management Services
It is a criminal offence for a person or firm to provide debt management services in Ireland without the appropriate authorisation from the Central Bank.
Authorisation of debt management firms provides a number of important protections for consumers:
The Central Bank advises customers of Smart Resolutions, who have not already engaged with another authorised debt management firm, to urgently re-engage with their lenders to try to resolve or manage their debt issues.
All consumers should also be aware that free, independent debt advice is available from the Money Advice and Budgeting Service (MABS)
Consumers wishing to confirm the regulatory or authorisation status of firms may do so by checking the Central Bank’s registers or by contacting the Central Bank on telephone (01) 224 4000.
Background
On 15 August 2014, the Central Bank published a Notice which stated that Smart Resolutions is not an authorised debt management firm.
On 25 August 2014, the Central Bank was served with judicial review proceedings issued on behalf of Smart Resolutions. The reliefs sought included an injunction requiring the Central Bank to remove the Notice from its website and prohibiting the Central Bank from interfering with Smart Resolutions’ business in any way, pending the determination of the judicial review proceedings.
On 5 September 2014, the High Court adjourned the judicial review proceedings, on condition that Smart Resolutions undertook not to engage in debt management services until authorised to do so.
Since the 5 September 2014, the Central Bank continued to receive and investigate reports alleging that Smart Resolutions and persons associated with that firm continued to provide debt management services.
In early December 2014, the Bank received further reports with information of an urgent and compelling nature in relation to Smart Resolutions. In light of that further information and in fulfilment of the Central Bank’s obligation to protect consumers, a High Court application was made for an enforcement order against Smart Resolutions and certain persons and entities associated with that firm.
Note to editors:
The Central Bank Act, 1997, was amended by the Central Bank (Supervision & Enforcement) Act, 2013 to provide for a regulatory regime in respect of the services of debt management firms that previously fell outside existing regulatory regimes i.e. debt advice and negotiation with creditors for the discharge of debt.
The Government introduced this new regime in August 2013 requiring debt management firms to be authorised and regulated by the Central Bank. Following the introduction of that legislation, the Central Bank, in October 2013, published Authorisation Standards and Requirements for debt management firms, which included a requirement to comply with the Minimum Competency Code, 2011. In March 2014 the Minimum Competency Code was updated to clarify the obligations of debt management firms.
A debt management firm is defined as:
‘A person who for remuneration provides debt management services to one or more consumers, other than an excepted person.’
Debt management services are defined as:
Just in case anyone here has had any dealings with either of the above, I came accross this on Friday:
(can't post the URL as i'm new here, but it's in their press release area)
Seems like the CBI have taken a drastic enogh step for reasons best known to themselves!
Statement – Smart Resolutions
12 December 2014
The Central Bank of Ireland has secured High Court enforcement orders against two Co Tipperary based firms, restraining them from unauthorisedprovision of debt management services and requiring the preservation of certain records and information.
The enforcement orders were granted against:
- Clonmel C&R Management Consultants Limited;
- Smart Resolutions Mediation Limited (“Smart Resolutions”); and
- certain persons associated with the above entities.
Enforcement orders are one of a suite of enhanced Central Bank powers introduced in 2013. Section 52 of the Central Bank (Supervision and Enforcement) Act provides that where the Central Bank believes a person has engaged, or is about to engage, in conduct that contravenes financial services legislation, an ex parte application can be made to the High Court for an order restraining that person from engaging in such conduct.
Authorisation of Debt Management Services
It is a criminal offence for a person or firm to provide debt management services in Ireland without the appropriate authorisation from the Central Bank.
Authorisation of debt management firms provides a number of important protections for consumers:
- As part of the authorisation process, the Central Bank assesses the experience and qualifications of each applicant against the Central Bank’s published fitness and probity standards.
- Once a firm is authorised, its customers are covered by the regulatory protections under the Consumer Protection Code, which includes a number of additional requirements specifically for customers of debt management firms who may be in a vulnerable position.
- Customers of authorised debt management firms can bring complaints to the Financial Services Ombudsman.
The Central Bank advises customers of Smart Resolutions, who have not already engaged with another authorised debt management firm, to urgently re-engage with their lenders to try to resolve or manage their debt issues.
All consumers should also be aware that free, independent debt advice is available from the Money Advice and Budgeting Service (MABS)
Consumers wishing to confirm the regulatory or authorisation status of firms may do so by checking the Central Bank’s registers or by contacting the Central Bank on telephone (01) 224 4000.
Background
On 15 August 2014, the Central Bank published a Notice which stated that Smart Resolutions is not an authorised debt management firm.
On 25 August 2014, the Central Bank was served with judicial review proceedings issued on behalf of Smart Resolutions. The reliefs sought included an injunction requiring the Central Bank to remove the Notice from its website and prohibiting the Central Bank from interfering with Smart Resolutions’ business in any way, pending the determination of the judicial review proceedings.
On 5 September 2014, the High Court adjourned the judicial review proceedings, on condition that Smart Resolutions undertook not to engage in debt management services until authorised to do so.
Since the 5 September 2014, the Central Bank continued to receive and investigate reports alleging that Smart Resolutions and persons associated with that firm continued to provide debt management services.
In early December 2014, the Bank received further reports with information of an urgent and compelling nature in relation to Smart Resolutions. In light of that further information and in fulfilment of the Central Bank’s obligation to protect consumers, a High Court application was made for an enforcement order against Smart Resolutions and certain persons and entities associated with that firm.
Note to editors:
The Central Bank Act, 1997, was amended by the Central Bank (Supervision & Enforcement) Act, 2013 to provide for a regulatory regime in respect of the services of debt management firms that previously fell outside existing regulatory regimes i.e. debt advice and negotiation with creditors for the discharge of debt.
The Government introduced this new regime in August 2013 requiring debt management firms to be authorised and regulated by the Central Bank. Following the introduction of that legislation, the Central Bank, in October 2013, published Authorisation Standards and Requirements for debt management firms, which included a requirement to comply with the Minimum Competency Code, 2011. In March 2014 the Minimum Competency Code was updated to clarify the obligations of debt management firms.
A debt management firm is defined as:
‘A person who for remuneration provides debt management services to one or more consumers, other than an excepted person.’
Debt management services are defined as:
- Giving advice about the discharge of debt (in whole or in part), including advice about budgeting in connection with the discharge of debts;
- Negotiating with a person’s creditors for the discharge of a person’s debts (in whole or in part);
- Any similar activity associated with the discharge of debts.
