Central Bank to investigate banks adding legal fees to mortgages
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The Central Bank of Ireland has launched an investigation into the legality of commercial banks adding legal fees to the mortgages of customers in arrears, even before court cases have concluded.
More than 60,000 mortgage holders have been hit with legal fees running to tens of thousands of euro, the Irish Examiner reports.
Finance Minister Paschal Donohoe said: “I am advised by the Central Bank of Ireland that it is aware of the reported practice that some lenders apply legal costs to the mortgage accounts of borrowers in arrears before the conclusion of legal proceedings.
“The Central Bank is examining this practice to determine if it is permissible under the Code of Conduct on Mortgage Arrears, CCMA, the Consumer Protection Code 2012, and other regulations.”
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