Mortgage Repayments

Dáil Éireann Debate, Thursday - 17 April 2014

Thursday, 17 April 2014

Ceisteanna (65)

Michael McGrath

Ceist:

65. Deputy Michael McGrath asked the Minister for Finance the reason Bank of Ireland finds it necessary to take proceedings in both the High Court and the Circuit Court for the same cause of action, namely, the recovery of mortgage debt on the same property, that is, repossession in the Circuit Court and an order for recovery of mortgage debt in the High Court; his views that it is grossly unfair to put distressed borrowers to the stress and expense of two sets of legal proceedings for the same debt in two separate court systems; and if he will make a statement on the matter. [18396/14]

Freagraí scríofa

Minister for Finance

As the Deputy is aware, I have no statutory function in relation to banking decisions made by individual institutions at any particular time. Although the State is a minority shareholder in Bank of Ireland, I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure their value as an asset to the State. The Relationship Framework that has been put in place defines the nature of the relationship between the Minister for Finance and each bank.

Notwithstanding this, officials in my Department have asked Bank of Ireland to comment on the scenario as outlined by the Deputy. The bank has confirmed that this is not its normal practice and that it will take legal action to maximise recoveries dependent on case circumstances.