Fianna Fail & Fine Gael Are No Cure For Covid-19 Bank Overcharging

james toney

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The Banks are always at the rip off and greed....not surprising that Ex FG Brian Hayes who is chief executive of the Irish Banking and Payments Federation,is also in the middle of it, along with his friends Varadkar,Donohue,and Humphries.

Pearse Doherty asked the Central Bank governor today about the charging of interest on mortgage breaks.
Governor agrees that interest does not have to be charged on a mortgage to avoid being classed as being in default - so long as criteria follows the EBA's guidelines.

“Mr Doherty quoted from the minutes of the meeting where all four of these people claimed they were required by regulatory rules to charge interest.”


Brian Hayes said they only found out about it yesterday (Not True).....In fact Brian was found out once again as Pearse Doherty exposed their rip off culture of customers.

response-to-pearse-doherty-on-payment-breaks-published-22-june-2020.pdf




response-to-pearse-doherty-on-payment-breaks-published-22-june-2020.pdf
 
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myrak

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The covid crisis stopped the country in it’s tracks. Many people have lost businesses and jobs as a result.

The banks payments break merely delayed final payment date -all repayments will be made. The banks will not be at any loss.

Govt all over the world have tried to keep people afloat during this emergency.

I hope the banks will not be allowed to re- mess up the lives of those who have already bailed them out from their own self inflicted crash.
 

Uganda

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The covid crisis stopped the country in it’s tracks. Many people have lost businesses and jobs as a result.

The banks payments break merely delayed final payment date -all repayments will be made. The banks will not be at any loss.

Govt all over the world have tried to keep people afloat during this emergency.

I hope the banks will not be allowed to re- mess up the lives of those who have already bailed them out from their own self inflicted crash.
so let’s let everybody have interest free loans

and when the banks run out of money as a result I’m sure Pearce will vote to bail them out.

as he did before
 

myrak

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so let’s let everybody have interest free loans

and when the banks run out of money as a result I’m sure Pearce will vote to bail them out.

as he did before
The national clock stopped but the bank clocks kept going.
 

james toney

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The covid crisis stopped the country in it’s tracks. Many people have lost businesses and jobs as a result.

The banks payments break merely delayed final payment date -all repayments will be made. The banks will not be at any loss.

Govt all over the world have tried to keep people afloat during this emergency.

I hope the banks will not be allowed to re- mess up the lives of those who have already bailed them out from their own self inflicted crash.
The banks want it both ways....and not surprising that Brian Hayes was trying to pull fast one on their behalf.
The Central Bank of Ireland and the European Banking Authority (EBA) confirmed that banks were NOT required to charge additional interest on Covid-19 mortgage breaks.

Since March, nearly 80,000 mortgage-holders impacted by the pandemic have taken payment breaks which will see additional interest charged by as much as several thousand euro over the lifetime of the loans.
 

Uganda

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The banks want it both ways....and not surprising that Brian Hayes was trying to pull fast one on their behalf.
The Central Bank of Ireland and the European Banking Authority (EBA) confirmed that banks were NOT required to charge additional interest on Covid-19 mortgage breaks.

Since March, nearly 80,000 mortgage-holders impacted by the pandemic have taken payment breaks which will see additional interest charged by as much as several thousand euro over the lifetime of the loans.
what ADDITIONAL interest?
 

michael-mcivor

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The banks want it both ways....and not surprising that Brian Hayes was trying to pull fast one on their behalf.
The Central Bank of Ireland and the European Banking Authority (EBA) confirmed that banks were NOT required to charge additional interest on Covid-19 mortgage breaks.

Since March, nearly 80,000 mortgage-holders impacted by the pandemic have taken payment breaks which will see additional interest charged by as much as several thousand euro over the lifetime of the loans.
Your whipping the floor clean of the FF FG mob- it’s a joy to watch and read-
 

Lumpy Talbot

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I think the point you may have missed, hbap, is that some bankers seem to think that they can still charge interest on a mortgage through the mortgage pause ordered by the government or add it to the end of a mortgage period, compounded.

The Central Bank is saying that this is not the case.
 

Lumpy Talbot

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No
Not like the banks to make a mistake like that when it comes to regulation :)
 

james toney

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The national clock stopped but the bank clocks kept going.
They sure did...and with Brian Hayes trying to cover their tracks they thought that nobody would notice.

Doherty said it was an issue where the government should step in as banks across European countries had not charged customers interest on mortgage breaks.

“Charging interest accrued on loan payment breaks during Covid-19 is the banks profiteering on the pandemic,” he said.

“The idea here from the banks or indeed the government that these new guidelines are a bolt from the blue … does not add up. I have a letter from the Central Bank where they told me that banks don’t have to charge interest rates on the breaks.”


I bet despite all the links and evidence...some of the deluded FG/FF cheerleaders won't believe their own eyes and ears again.
 

hiding behind a poster

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Charging interest on loans they are NOT required to is BLATANT overcharging. So the OP is fine.
They're charging interest as per the terms of the loans. It's no more or less "overcharging" than when the loans were drawn down, surely?
 

hiding behind a poster

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They sure did...and with Brian Hayes trying to cover their tracks they thought that nobody would notice.

Doherty said it was an issue where the government should step in as banks across European countries had not charged customers interest on mortgage breaks.

“Charging interest accrued on loan payment breaks during Covid-19 is the banks profiteering on the pandemic,” he said.

“The idea here from the banks or indeed the government that these new guidelines are a bolt from the blue … does not add up. I have a letter from the Central Bank where they told me that banks don’t have to charge interest rates on the breaks.”

I bet despite all the links and evidence...some of the deluded FG/FF cheerleaders won't believe their own eyes and ears again.
To be fair now, there could be a bit of "boy who cried wolf" here.
 

Ottoman

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They're charging interest as per the terms of the loans. It's no more or less "overcharging" than when the loans were drawn down, surely?
Can you point to the item in the terms and conditions that says 'in the event of a global pandemic in which literally millions of people worldwide will lose their jobs and hundred of thousands will die in the space of a few months, we will give you a payment break but will still charge you extortionate interest on' ?

This is an extraordinary circumstance the world not just Ireland finds itself in.

Both the Irish Central Bank and the European Banking Authority have publicly asserted months ago that Banks were not required to charge interest on these payment breaks. But they will do so anyway.

Irish Banks are charging thousands of customers interest rates for which they do not need to charge. That is overcharging.
 

hiding behind a poster

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Can you point to the item in the terms and conditions that says 'in the event of a global pandemic in which literally millions of people worldwide will lose their jobs and hundred of thousands will die in the space of a few months, we will give you a payment break but will still charge you extortionate interest on' ?

This is an extraordinary circumstance the world not just Ireland finds itself in.

Both the Irish Central Bank and the European Banking Authority have publicly asserted months ago that Banks were not required to charge interest on these payment breaks. But they will do so anyway.

Irish Banks are charging thousands of customers interest rates for which they do not need to charge. That is overcharging.
If the various regulatory bodies like the ICB and EBA had wanted to ban charging interest during any payment breaks caused by Covid, they could've done so. But they didn't. They specified that banks don't have to charge interest, but didn't say that they mustn't. So while it might be nice for borrowers if there was no interest charged during payment breaks, I don't think anyone can say banks are in breach of any regulation, or in breach of the terms of the loan, by charging interest during payment holidays. As an example, banks sometimes offer a 3-month or 6-month holiday at the start of a mortgage, but again they charge interest during the period - the decision for the borrower is whether the increased cost of credit over the life of the mortgage is worth it for the payment holiday at a time, having just bought a house, that other overheads are unusually high.
The other point to remember is that it's in everyone's interests, the banks, the borrowers and society in general, that people continue to pay their mortgages if possible - so there's no harm in encouraging people to continue to make their repayments if they can. Making a payment holiday something with all upside and no downside could encourage people who don't necessarily need a payment break to take one anyway, and that's obviously not good.
(By the way I think your description of mortgage rates as extortionate is a bit of a stretch)
 
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Uganda

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Charging interest on loans they are NOT required to is BLATANT overcharging. So the OP is fine.
so if I go into Tesco, they are NOT required to charge me for my groceries, but they do, that is overcharging?

interesting idea.
 

borntorum

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Sometimes I wonder am I a mug for bothering to pay my mortgage every month.

There's a school of thought in this country that people have a God-given right to own a house and the banks should have no right to enforce their lending.
 

Ottoman

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If the various regulatory bodies like the ICB and EBA had wanted to ban charging interest during any payment breaks caused by Covid, they could've done so. But they didn't. They specified that banks don't have to charge interest, but didn't say that they mustn't. So while it might be nice for borrowers if there was no interest charged during payment breaks, I don't think anyone can say banks are in breach of any regulation, or in breach of the terms of the loan, by charging interest during payment holidays.
The other point to remember is that it's in everyone's interests, the banks, the borrowers and society in general, that people continue to pay their mortgages if possible - so there's no harm in encouraging people to continue to make their repayments if they can. Making a payment holiday something with all upside and no downside could encourage people who don't necessarily need a payment break to take one anyway, and that's obviously not good.
(By the way I think your description of mortgage rates as extortionate is a bit of a stretch)

If the various regulatory bodies like the ICB and EBA had wanted to ban charging interest during any payment breaks caused by Covid, they could've done so.
Oh sure, just ban multi billion Euro Banks from charging interest. That would be so easy wouldn't it. Its very murky ground as to whether they would even have the authority to do that!

They specified that banks don't have to charge interest, but didn't say that they mustn't.
Exactly, which was expressed months ago as per other EU countries not charging interest on payment breaks. But which the Brian Hayes and his fellow lobbyists, ehem, deliberately misinformed, the Irish Finance Minister on.

The representatives of various Irish Banks claimed to the Irish public and the Finance Minister that they must charge interest on these breaks. This was a flat out lie.


The other point to remember is that it's in everyone's interests, the banks, the borrowers and society in general, that people continue to pay their mortgages if possible - so there's no harm in encouraging people to continue to make their repayments if they can.
Nobody is arguing the contrary. Its also in everyone's interest that Banks (bailed out Banks at that, mostly owned by the Irish Tax Payer because of their grotesque greed and irresponsibility) do not over charge citizens in the course of a global pandemic by overcharging already struggling people and families.

Making a payment holiday something with all upside and no downside could encourage people who don't necessarily need a payment break to take one anyway, and that's obviously not good.
There's no upside to a payment break. For anyone. The money still has to be paid. The question at hand is whether people should incur more interest on an already ridiculously priced mortgage rate, if they Lender is not required to.
All in this together?

(By the way I think your description of mortgage rates as extortionate is a bit of a stretch)
Ireland has one of the highest mortgage rates in the EU, behind only Romania and Hungary if my memory serves me, behind two former Soviet Blocs, after 10 years of FG government.
 

Ottoman

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so if I go into Tesco, they are NOT required to charge me for my groceries, but they do, that is overcharging?

interesting idea.
If you go into Tescos and they tell you to pay for your groceries through monthly payments over a 20 - 35 year period, with interest, then tell you can stop paying for your groceries for 6 months but you'll still have to pay interest on the payments that your not making, that is overcharging.

But literally thousands of pages legislation is all just Tescos and groceries to you isn't it.
 


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