We were asked to speak to Fionn Davenport & Kieran Cuddihy on Davenport After Dark about the changes in the Land Conveyance Law Reform Act 2013 which may result in more repossessions in the future, we agree with this view, the question is what [glossary id=’6898′ slug=’mortgage’ /] holders will be targeted first?
One Comment
Leave a Comment
Awesome! You've decided to leave a comment. Please keep in mind that comments are moderated.
Hi Karl,
I listened to your piece on Newstalk this morning (19/08/2013) regarding ‘strategic defaulters’ and I just wanted to congratulate you for highlighting the reality of this issue.
I worked for the former Irish Nationwide Building Society for over 17 years and for a two year period I was it’s Mortgage (Residential) Administration Manager. Although I’m out of banking now I still help former clients with negotiations with various banks.
My experience over the past couple of years, and especially this year, in ‘dealing’ with the banks, foreign and domestic, has exposed some incredibly unethical and unfair practices and on the whole I fear there is still great damage being done to peoples lives without there being any correlating improvement to the ‘real’ banking system or indeed the economy.
With specific reference to the above ‘Davenport after Dark’ broadcast relating to the Land Conveyance Law Reform Act 2013, (and also including the subsequent amendment to the Code of Conduct on Mortgage Arrears which came into effect on 1st August) and the prospect of increased Repossessions I have the following observation to make;
The Banks (specifically, AIB, Bank of Ireland and IBRC) intend using the legislation to obtain Orders for Possession but not necessarily to actually repossess houses. The point to be noted is that once an institution obtains an Order for Possession it is valid for twelve years (six years initially with automatic renewal for a second six years on application to the issuing Court) with the ‘holding’ institution never having to revert to Courts or indeed any other authority to exercise it’s Order during that time.
The Banks will then use the Order for Possession (and the threat of Repossession) to target the so called ‘strategic defaulters’. More importantly the Banks at present are also classifying people who choose to pay unsecured loans (Car Loans, Credit Union Loans etc.) ahead of their mortgages as ‘strategic defaulters’. It is their intention to use the threat of Repossession as a means to counter this and is, I believe, a scandal of itself, equal to any other in the Banking Sector.
Bear in mind that (according to Bank of Ireland’s Richie Boucher) 10% of Arrears cases are deemed to be ‘strategic defaulters’ (10% of 14% (accepted arrears level) is 1.4% of mortgage holders). You and I both know that mortgages are not classified into ‘ordinary’ defaulters and ‘strategic’ defaulters (there is no way of telling on a banks IT system) therefore it follows that ALL Banks are applying the same ‘tactics’ and intimidatory practices to ALL mortgage defaulters.
I’m ashamed to say that we used the very same ‘tactics’ during my time in INBS although I will argue that they were different times ‘pre-crash’. Once we had an Order for Possession we’d threaten to Repossess every so often, the Customer would come up with a few bob, we’d postpone the Repossession and then a few months or a year down the line if arrears had built back up we’d repeat the threat and away we’d go again!
I just think that in the current climate, with the enormous pressures being placed on mortgage holders, and the increased risks of ‘finance’ related suicides, this is an abhorrent practice. The Banks have, in my opinion, pulled the wool again over the Regulator and the Government’s eyes.
That’s my rant for the day out of the way! I would just like to compliment you again for highlighting the issue and you might also pass on my compliments too to Newstalk for their coverage which is excellent.
Regards,
John Ha*****y,
08*****79.