An Australian lender that bought ?600m in Irish mortgages from GE will not offer any form of debt forgiveness to those struggling to make repayments.
Pepper Group has bought an Irish credit business from GE Capital, acquiring a ?600m loan book spread across 3,500 homes.
Pepper Group has acquired all of the share capital of GE Capital Woodchester Home Loans Limited, with the finalisation of the deal, first announced in June.
The company will be renamed as Finance Corporation (Ireland) Limited, to trade as Pepper Asset Servicing.
The company?s chief operating officer for Europe has told the Irish Echo that Pepper will not be able to offer debt forgiveness to mortgage-holders in financial difficulty.
Fraser Gemmell said Ireland has a ?positive long term macro-economic outlook?, in which he is hopeful the company can move forward.
?Pepper is committed to the Code of Conduct on Mortgage Arrears (CCMA) as published by the Central Bank of Ireland. We will not be offering debt forgiveness but have a number of different options available to borrowers in difficult financial positions,? said Mr Gemmell.
About 150 highly experienced former GE Capital employees have transferred to Pepper as part of the deal. They will continue to service existing mortgages and other consumer finance loans from Pepper?s offices in Shannon and Dublin.
Separately, Pepper has also agreed to take over the servicing of GE Capital?s Irish portfolio of personal, small enterprise and car loans, maintaining an ongoing relationship between the two organisations.
The company is hoping the deal will help their expansion across Europe.
?The establishment of our operation in Ireland marks the beginning of our ambitious plans to establish a best-in-class, pan-European loan servicing and real estate asset management platform,? said Pepper Group CEO, Patrick Tuttle.
?We have already identified a significant number of potential third-party servicing opportunities in the Irish lending market which we hope will enable us to progressively grow our employee numbers in Ireland.?
Mr Tuttle had previously voiced his awareness of the difficulties many Irish homeowners are facing in meeting mortgage repayments.
Figures releases by Ireland?s Central Bank in August showed that one in five Irish mortgage holders were in some level of financial difficulty at the end of June this year.
Source: http://www.irishecho.com.au/2012/10/10/aussie-lender-rules-out-debt-relief-on-irish-mortgages/21069
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