Moneyzone fined for regulatory breaches

THE IRISH Mortgage Corporation Limited, trading as Moneyzone, has been fined € 65,000 as part of a settlement agreement with the Central Bank for regulatory breaches.

Moneyzone, which arranged subprime loans for borrowers, ceased business in October 2008 but was found to have breached the Consumer Protection Code and the Minimum Competency Requirements between July 2007 and October 2008.

The Central Bank found that the company made numerous breaches of the codes, including failing to act professionally in the best interests of its customers; failing to comply with certain aspects of its complaints handling procedures and to maintain up-to-date records of complaints made by certain consumers; and failing to have and employ systems and controls to ensure compliance with the codes.

“Where those in financially precarious positions are not afforded the protections provided to them under the provisions of the Consumer Protection Code and the Minimum Competency Code, we will act,” said Derville Rowland, head of the enforcement division.

Meanwhile, the Central Bank also said yesterday it has entered into separate settlement agreements with two retail intermediaries for their failure to hold professional indemnity insurance for a period of time. The cover insures against the cost of paying justified claims by consumers relating to professional negligence.

Gerard Geraghty, trading as Geraghty Co in Westport, Co Mayo, was reprimanded and fined €1,100. Maurice Buckley, trading as Maurice Buckley Insurance Investment Services of Glanmire, Co Cork, was fined €800. The Central Bank said both Mr Geraghty and Mr Buckley acted promptly to rectify the matter and now have satisfactory insurance in place.