Investment funds—more commonly referred to as “vulture funds”—have been making headlines in Ireland for all the wrong reasons. They’re often criticised for aggressively pursuing debtors, deepening financial distress for those already struggling, and showing little interest in meaningful negotiation or resolution.
In this article, we answer some of the most frequently asked questions about these investment entities, to help you understand what they are, how they operate, and how best to deal with them.
What is a Vulture Fund?
A vulture fund is a type of investment company that buys up debt or property at a very low price—usually when the original owner is in financial trouble.
Think of it like this: someone can’t pay their mortgage or loan, so the bank sells that loan (or the property) to a vulture fund at a discount. The vulture fund then tries to make a profit—either by collecting the full amount from the original borrower (often through legal action), or by selling the property at a higher price.
They’re called “vulture funds” because, like vultures circling distressed animals, they tend to swoop in when people or businesses are already in financial difficulty.
According to recent figures from the Central Bank, vulture funds now hold 62% of mortgage accounts in arrears—a figure that highlights the scale of the challenge for affected borrowers.
What should I do if a fund is pressuring me financially or seeking repossession?
If a vulture fund is pressuring you with high interest rates, unaffordable terms, or threats of repossession, the first step is to engage with them—if possible—to try and find a resolution or restructuring plan that you can afford.
What if the fund refuses to negotiate?
If they are unwilling to reach a reasonable agreement, it’s time to seek professional advice. A qualified Personal Insolvency Practitioner (PIP) can help explore your options—one of which may be a Personal Insolvency Arrangement (PIA) that can protect your home and deal with your debts in an affordable way.
What is a PIA?
A Personal Insolvency Arrangement (PIA) is a formal debt solution designed to:
- Protect your home from repossession
- Address mortgage arrears
- Reduce monthly repayments to an affordable amount
- Deal with excessive interest rates
- Restructure your mortgage based on your financial situation
- Write off certain unsecured debts
A PIA restructures your debts into a manageable plan, helping you avoid bankruptcy and regain financial control. It can reduce unsecured debt, stop legal action from creditors, and offer a clear path toward long-term recovery.
How does a PIA work?
A PIP will guide you through the process from start to finish, beginning with an assessment of your financial situation to determine if a PIA is the right solution for you.
They will help:
- Draft your Prescribed Financial Statement (PFS)
- Secure a Protective Certificate (which gives you legal protection from creditors during the process)
- Create and submit your proposal for creditors to vote on
If creditors reject your proposal, your PIP may be able to appeal the decision in court. In some cases, the court can overturn the creditor’s objection, meaning the PIA will go ahead and become legally binding.
How can I get proper advice?
Speak with a professional—either ourselves or a trusted organisation like MABS (Money Advice and Budgeting Service). A qualified PIP can explain all your options before you make any commitments.
We offer a free, confidential consultation to help you understand your situation and explore the best path forward. With four experienced PIPs in-house, we’re here to support you through the complexities of dealing with vulture funds and the insolvency process.
Contact Us
Click here to find out more about a PIA, or get in touch with McCambridge Duffy today to learn more about how we can help.
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