Lenders warned over adding legal costs to mortgage accounts during repossession cases
Lenders must not add legal costs to mortgage accounts during repossession proceedings, the Central Bank of Ireland has warned.
In a letter to lenders, the Central Bank said the application of legal costs “prior to the conclusion of repossession proceedings and prior to the decision by a court to award the costs associated with the legal process” is not in accordance with the Consumer Protection Code.
Lenders have been told to undertake a review of their own practices to identify any cases in which charges were inappropriately imposed.
The Central Bank has set out a deadline of 20 December 2019 for lenders to confirm they have undertaken a review and to outline how they intend to address any issues arising from it.