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Start Mortgages' authorisation challenged

written by Patrick
29.11.10 Posted in Finance 0 0

Robert Gunn is taking a High Court action challenging whether or not mortgage lender Start Mortgages is properly authorised to lend in the Irish market. The High Court has cleared the way for an unemployed father-of-one in arrears on his mortgage to challenge whether his lender ‘Start Mortgages’ was licensed to issue the loan.

Mr Justice Michael Peart gave Robert Gunn, permission to take the challenge.
Mr Gunn claims that Start Mortgages says it is legally authorised in this State. He says the company relies on a Statutory Instrument from 2004, in which the Consumer Director of the Irish Financial Services Regulatory Authority, Mary O'Dea, prescribed Start Mortgages as a credit institution in the state.

His legal team say Ms O'Dea has no authority, power or function to make such an order. And the power to prescribe a credit institution is vested exclusively within the Central Bank of Ireland.

Mr Gunn, who was employed in the construction sector but is currently unemployed, took out a loan of €210,000 with Start Mortgages in September 2007, secured against his family home.
Arrears began to build up after he became unemployed in May 2008 and Start Mortgages, the sub-prime lender routinely criticised for its approach to pursuing bad debts, has now sought possession of his home. Mr Gunn says he has lived there all his life and his family have lived there for over three centuries.

The action is being taken by lawyers from New Beginning, a group set up to help people who are at risk of having their homes repossessed.

It will be back before the High Court on December 16

Patrick

Patrick's been inventing, brainstorming, planning, coding, implementing, editing— fully heads down, toiling night and day for three years, to bring price comparison to the Irish consumer. If you have suggestions or feedback feel free to get in contact.

Patrick
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