Mullingar’s District Court judge has questioned the actions of financial institutions which in the past refused payment offers from debtors but are now willing to accept them.
Judge Seamus Hughes said it was “very enlightening” that a Westmeath woman had offered Ulster Bank €20 per month on a €37,850 debt in 2011 but it was refused.
The loan value has since increased by around €6,000.
He said many of the thousands of people who appear before the debtors’ courts had probably in the past made offers that they could live with and comply with but many of those offers were refused by financial institutions.
“Then two years later, when [banks] are dragged roaring and shouting into the world of reality, they accept it,” he said, pointing out that interest accrues in the meantime.
If the bank had accepted her offer in 2011, even though she had still be paying interest over the last 18 months, it would be on a reducing balance, he said.
He noted that the woman was representing herself, probably because she couldn’t afford a solicitor to act on her behalf.
A solicitor acting as agent for Mason, Hayes and Curran on behalf of Ulster Bank said the bank is prepared to accept the €20 per month payment, but said he was unable to comment on whether that offer had been refused in the past.
The woman said she made the refused offer in June 2011 when she had been receiving a social welfare payment of €158 per week.
The judge, who said he deals with hundreds of debt cases like hers, adjourned the case for solicitors Mason, Hayes, and Curran, who represent Ulster Bank to clarify how the judgement of €37,850 secured against the woman in May 2011 now stood at around €43, 200.
This breakdown is to show the annual calculations at the court rate of 8 per cent and any judgment costs, which were estimated at around €750.
He was concerned that perhaps Mason, Hayes, and Curran had furnished an incorrect certificate of amount due, and that the amount due was likely to be less than the certificate before him stated.
He also requested the law-firm to outline what discretion he has in dealing with the case if the balance is incorrect.
“Am I a rubber stamping operation up here or do I enjoy any discretion,” he asked, adding “I don’t enjoy that position of rubber stamping.”
He said he had sympathy for the woman and would not finalise the case immediately.
Mason, Hayes and Curran are to respond to him on behalf of Ulster Bank for the woman’s next appearance on March 8.
