Cork-based moneylending company Marlboro Trust has reached a settlement agreement with the financial regulator over suspected breaches of regulatory requirements.
The financial regulator said it had reasonable cause to suspect that certain credit agreements were not in compliance with Section 30 of the Consumer Credit Act, 1995.
Section 30 deals with the need for credit agreements and loan arrangements to consumers to be in writing. The credit agreements in question formed part of a book of business bought from an unauthorised credit provider, the regulator said in a statement.
Kevin Murray, a director at Marlboro, said the breaches of Section 30 did not show up when it carried out due diligence on the business it was buying and were brought to the company's attention by the regulator about 10 months after it had bought the business.
He said the company had co-operated fully with the regulator when it launched an investigation into the breaches of the regulatory rules.
"Our business is totally above board," he said. "This is a business we bought and a number of credit agreements were out of line." Mr Murray said the credit agreements related to less than €30,000 worth of business.
Following an investigation, the regulator reprimanded Marlboro Trust Limited in relation to the suspected breaches.
It is understood that no fine was imposed on the firm, which is based in Mayfield Business Park in Cork.
"Marlboro Trust Limited fully co-operated with the examination and the matter is now closed," the regulator said in its statement.
Mr Murray confirmed that Marlboro Trust has ceased collecting repayments in respect of the relevant credit agreements.
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