The Central Bank is to examine the practice of financial lenders applying legal fees to the mortgage arrears accounts of homeowners involved in repossession cases. Yvonne Bogdanovic, manager of the Limerick branch of Mabs, has said the charging of legal fees to mortgage accounts “may be said to be usurping the statutory powers of the court” whose role it is to direct who ultimately shoulders legal costs in disputes. In a statement on Friday, the Central Bank said it is now “examining the reported practice of legal fees being added to mortgage arrears to determine if this practice is in compliance with the Code of Conduct on Mortgage Arrears (CCMA), the Consumer Protection Code (CPC) and other regulations”. “The Central Bank continues to encourage any borrowers who are in, or at risk of, financial difficulty to engage with their lender to ensure they receive the full protections of the statutory Code of Conduct on Mortgage Arrears. “This includes a restriction on lenders from imposing charges and/or surcharge interest on arrears arising on a mortgage account in arrears, unless the borrower is not co-operating.

Source: The Irish Times March 15, 2019 15:45 UTC