COURT proceedings by mortgage providers PTSB to repossess family homes will increase next year, Limerick Fine Gael Senator Kieran O’Donnell has been informed.
At Tuesday’s hearing of the Oireachtas Finance Committee, Senator O’Donnell questioned PTSB asset management director Shane O’Sullivan on the number of repossession cases the company has before the courts and how likely that number is to increase.
Mr O’Sullivan said that legal proceedings are only initiated when there is no engagement by a customer and, in most cases, €8,000 legal costs will be added to the borrower’s account.
“Do you find that to be fair or reasonable?, Senator O’Donnell questioned.
“It is the industry practice”, Mr O’Sullivan responded.
He said that up to 50 per cent of distressed customers were not engaging with the bank and 40 per cent only engaged with them after they were brought to court.
“We are looking to retain our customers and get the best solution for them but we do foresee the number of repossession cases increasing,” he told Senator O’Donnell.
Mr O’Sullivan confirmed that the bank had thousands of demand letters out to customers as well as a similar amount of legal letters “currently live” with distressed customers.
Earlier, PTSB chief executive John Masding said that they currently had 441 repossessed homes for sale on its asset books.
PTSB is to provide figures on its legal costs after committee chairman John McGuinness said that he was “shocked by the arrogance of a bank who would try to beat the customers they wronged in the higher courts”.
