by Andrew Carey
andrew
THE BANK of Ireland did not comply with Central Bank code of conduct when it tried to repossess the home of a county Limerick family despite the fact they had paid off their mortgage arrears.
The High Court has ruled that the bank did not comply with the code “in any shape or form” when it made a legal application to seize the family home.
Bank of Ireland agreed that the arrears were paid off and “slightly prepaid” but argued that the mortgage was “unsustainable” going forward.
This was rejected by the court as a basis for legal argument.
The bank said it was aware that the family had debts of over €250,000 owing to others and that this was not the family home but an investment property. They argued that they were entitled to bring the application as the mortgage was in default.
Legal respondents for the family said that the property was the family home but they had moved out for a brief period to assist an elderly parent.
The home owned by the parent was sold when they moved to a nursing home and the bank was paid €82,000 from the proceeds
Mr Justice Brian McGovern struck out the case but ordered that the family pay the legal costs as proceedings were initiated before the arrears were settled.
