With the recent reported agreement by AIB to sell its non-performing loans (NPLs) portfolio to a US investment group for a reported discounted price of €400 million (Project Oak), the controversy surrounding the sale of loans from the banks to third parties, known as “vulture funds”, continues. A decision had been taken previously in 2020 by the lender to postpone the sale.

A number of other parties are apparently circling Ulster Bank’s loan book following confirmation by the NatWest group that it plans to exit the Irish market in a phased withdrawal over a number of years. As such it appears that the time has now come, following temporary stays on legal proceedings and repossessions by many mainstream banks, for such loan book sales to be relaunched.

For those not familiar with the term, a vulture fund is a company that buys up distressed investments or underperforming debt, usually from banks. Often the vulture funds use others to service the loans.  The debts are often purchased in large debt books or portfolios and may include a combination of unsecured, secured or debts based on personal guarantees which have been assigned to the vulture funds. Often enforcement of the debt takes place with the threat of bankruptcy proceedings by the issue of a statutory demand or if there is security it may be by repossession proceedings, or a combination of both.

At MKB Law we advise numerous clients on all aspects of dealing with vulture funds and we examine each case carefully on its own merits before providing expert legal advice and representation, both prior to any legal action and after. No one case is the same and our approach is tailored to suit the individual client’s needs.

If you need advice on the above or have been served with legal proceedings please contact our Debt Recovery & Insolvency team to discuss.