With banks and other financial institutions offering advantageous financing solutions, the number of Irish citizens and companies contracting loans has increased spectacularly in the past few years. However, the financial market is often volatile and terms and conditions, as well as interests, can vary under the influence of both national and international changes in the legislation and financial markets’ stability. These situations often lead to clients no longer being able to pay their mortgages (most of the times) or loans contracted for other reasons. The recovery of debt can be completed by a debt collection agency in Ireland or by a law firm, depending on the creditor’s preferences.
Loan recovery in Ireland is often met and our debt collection lawyers are at the disposal of those seeking legal assistance in recovering the amounts of money owed.
Below, our lawyers explain the main steps related to loan recovery in Ireland.
Table of Contents
Legislation on lending money in Ireland
Loans are regulated by a set of laws in Ireland. These laws provide for the protection of the financial institutions, on one hand, and the protection of their customers on the other.
The main laws governing the possibility of accessing a loan, no matter if the client is a natural person or a commercial entity are:
- the Consumer Credit Law which was enabled in 1995 and is one of the most important laws in this sense;
- the Irish Central Bank Act which provides for the regulations under which financial institutions operate in this country;
- the Consumer Protection Code for financial institutions which regulates how banks and credit institutions deal with their customers;
- the Consumer Credit Directive which provides for the right and obligations of banks and credit institutions’ customers;
- the European Communities Regulations of 1995 which provides for unfair terms in consumer loans and credits.
It is important to note that the Consumer Protection Code which is an Irish regulation was amended several times as the Central Bank has allowed the registration of various types of credit institutions. Another important aspect to consider is that in the case of loan recovery in Ireland, a financial institution has a time limit of 6 years in order to start the legal proceedings against a debtor.
When it comes to loan recovery in Ireland, national, EU and other international regulations apply. Our lawyers can offer more information on the laws related to debt collection in Ireland.
Steps in loan recovery in Ireland
In order to start the loan recovery procedure, a credit institution or a bank must first establish that a customer has failed to pay a few of the installments of the contracted credit. Each financial institution has its own regulations in this sense, and once the incapability of payment has been noticed, the financial institution can start the debt collection procedure in Ireland.
Most of the times, credit institutions will follow the next steps in loan recovery in Ireland:
- they will try to recover the amounts of money through their financial department if the amount to be recovered is small;
- if unsuccessful, they can ask for the services of a private debt collection agency in Ireland or of a law firm;
- no matter how they choose to chase the debt, certain regulations related to contacting the debtor must be respected;
- the agency or the debt collection lawyers in Ireland will first try to amicably recover the loan through mediation;
- if mediation proves unsuccessful, the financial institution can file a debt recovery claim with an Irish court;
- based on the credit contract and other evidence supporting the loan recovery case, the judge can issue a debt recovery order.
Our debt collection lawyers in Ireland can offer assistance when it comes to court proceedings in loan recovery procedures.
Other aspects of loan recovery in Ireland
Debt collection in Ireland is very well regulated, which is why the law states that in the case of loan recovery, the creditor is entitled to ask for compensation under the form of interest for late payments. Irish courts can also dispose the seizure of assets, where the debtor fails to respond or pay the amount of money and interests resulted from the debt.
When issuing an enforcement order in a loan recovery case in Ireland, court will also consider the terms in the credit contract.
For complete information on how loan recovery cases are treated and assistance in such matters, do not hesitate to contact our debt collection lawyers in Ireland. We can offer assistance in amicable and legal debt collection procedures in Ireland, no matter the type of case involved.