Banks may have the upper hand in the tracker debate

In the Irish Times Barry O’Halloran covered a story on trackers which looks at a case by Alan Grant of DNG against PTsb who have claimed they have the right to seek full repayments on mortgages and not just interest only.

Our readings of loan offers are that there is an agreed period which is subject to reviews. PTsb have been seeking repayments on investment loans since 2010. The idea that it shouldn’t be allowed under the Consumer Credit Act 1995 is probably going to prove contentious because when you buy an investment property you are not acting as a consumer meaning the provisions may well not apply.

You can be a consumer for a financial service even if you are a credit union or a company with a turnover below €3,000,000 but for the head of mortgages in one of the countries largest estate agents there is a dual issue at hand, firstly Mr. Grant should be expert enough in mortgages to carry out the role as a mortgage advisor (bearing in mind this is Central Bank covered activity) so the idea of being ‘mis-sold’ probably doesn’t wash – obviously I’m assuming he brokered his own loan.

Secondly this was not a consumer transaction as he was acting within his trade/profession and the actual transaction may not be considered a consumer one even though the bank may have had paperwork to imply otherwise. A lot is hinging on this case for both sides, we are very interested in seeing how it turns out!

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