Promontoria raises the mortgage rate on loans bought from Stepstone

Brendan Burgess

Founder
Messages
39,131
I have pointed out that this is the main risk to customers of vulture funds.

Those who can't switch to another lender are completely at the mercy of the fund in the setting of interest rates.

While AIB and BoI can raise the rates at their sole discretion as well, they would lose a lot of new business if they did.

Brendan
 

michaelm

Frequent Poster
Messages
1,688
Those who can't switch to another lender are completely at the mercy of the fund in the setting of interest rates.
Should the Central Bank set an upper limit on what mortgage rate can be applied? Such shouldn't have any material affect on retail banks.
 

Metatron

Registered User
Messages
58
I don’t think Promontoria have a website up and running with a variable rate policy statement which they require under the addendum to the Consumer Protection Code 2012. I think this is also a requirement under the Consumer Protection Regulation of Credit Servicing Firms Act 2018. Maybe they are above CBI regulation.
 

Eureka101

Registered User
Messages
31
Yet another example ( in addition to mine here



as to why the CB must do something with these funds to protect the many thousands who cannot switch.
In an environment when rates are ( slowly ) dropping these Vulture funds ( Pepper and Promontoria among others ) appear to be moving in a completely different direction with their performing loans whilst the CB stands by and does nothing.
These performing loans were sold at a time when the banks were collapsing and exiting the country during a time of financial crisis.
However, we live in different times now and there is no place or justifiable reason for this sinister practice to be allowed to continue unchecked.
These funds should be forced to release their performing loans to functioning banks which would bring fairness to these customers, free up disposable income and drive profit for amongst others, the Irish banks that actually offer banking services.
It’s important to remember that we took out our original mortgages in good faith with an actual bank and not an uncooperative vulture fund..
If we’re so keen to change the ‘Culture of Banking’ here then these Vulture Funds must be scrutinised, held to account and reformed as we move into 2020.

Wishing all forum members a pleasant and peaceful Christmas.
 
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Metatron

Registered User
Messages
58
I think Promontoria are currently seeking CBI approval to be a credit servicing firm, maybe people so affected should complain to the Central Bank about their actions.
 
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