New laws that will protect all borrowers if their loans are sold on to unregulated firms are a step closer.

The Cabinet has approved the publication of a new consumer protection bill that will mean all credit servicing firms will require authorisation and regulation by the Central Bank.

It will mean that borrowers whose loans are sold on will maintain the same protections such as the code of conduct on mortgage arrears.

Finance Minister Michael Noonan says he hopes to get the laws passed by the Dáil and Seanad in the early part of this year.