Gerard P. Craughwell: Demands Banks Reclaim Vulture-Fund Mortgages
Gerard P. Craughwell addressed vulture funds charging high rates on mortgages and urged affected borrowers to seek new deals from their original banks or credit unions; he called the practice "daylife robbery" and offered to assist those refused by banks. He also said he had written to the Garda Commissioner about tracker mortgage issues raised previously and that the matter has been passed up the line.
Craughwell criticised vulture funds for charging up to 8.5% or 9% on mortgages while high street banks charge about 3% - calling the practice "daylife robbery". He instructed people paying vulture funds to return to the bank where they originally took out their mortgage and request a replacement mortgage with the bank or to consult their credit union.
He said the difference in rates can amount to as much as €400 a month or more depending on the mortgage size and asked borrowers to obtain proof that they have been making repayments to a vulture fund for years. He urged people who are refused a replacement mortgage to get the name of the bank contact and to contact his office; he said he would post his email address on his social media for those seeking help.
Craughwell noted banks were rescued at a cost of €64 billion and accused them of selling mortgages to vulture funds that are now making "massive profits". He cited recent bank returns mentioned in his speech - a permanent ESP sale figure of €2.6 billion on the market, Bank of Ireland returning €1.2 billion in profits this year, and AIB returning around €900 million - to argue that profitable banks should take back performing mortgages.
He reiterated that he had spoken the previous day on tracker mortgages and had written to the Garda Commissioner about those matters. He asked for transparency and public scrutiny, urging borrowers to report refusals so the issue can be highlighted and families can seek relief.
Main message
Craughwell criticised vulture funds for charging up to 8.5% or 9% on mortgages while high street banks charge about 3% - calling the practice "daylife robbery". He instructed people paying vulture funds to return to the bank where they originally took out their mortgage and request a replacement mortgage with the bank or to consult their credit union.
Practical advice for borrowers
He said the difference in rates can amount to as much as €400 a month or more depending on the mortgage size and asked borrowers to obtain proof that they have been making repayments to a vulture fund for years. He urged people who are refused a replacement mortgage to get the name of the bank contact and to contact his office; he said he would post his email address on his social media for those seeking help.
Critique of banks and public cost
Craughwell noted banks were rescued at a cost of €64 billion and accused them of selling mortgages to vulture funds that are now making "massive profits". He cited recent bank returns mentioned in his speech - a permanent ESP sale figure of €2.6 billion on the market, Bank of Ireland returning €1.2 billion in profits this year, and AIB returning around €900 million - to argue that profitable banks should take back performing mortgages.
Previous action and accountability
He reiterated that he had spoken the previous day on tracker mortgages and had written to the Garda Commissioner about those matters. He asked for transparency and public scrutiny, urging borrowers to report refusals so the issue can be highlighted and families can seek relief.
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Transcript
Go raibh maith, Car Herlach. Car Herlach, yesterday I spoke on the issue of tracker mortgages and the plight of those who were moved off trackers by the banks and ultimately forced back to it. I did, as promised yesterday, write to the Garda Commissioner and it has been passed up the line and enough said about that for now. However, as a result of yesterday, I have had several contacts already this morning on the issue of vulture funds. Vulture funds are charging up to 8.5% or 9% on mortgages when the high street banks are charging about 3%. This is daylife robbery, absolute daylife robbery. I'm going to say a couple of things here. First and foremost, people who are currently paying a vulture fund and have been paying a vulture fund for some time should go back to the bank that they originally took out their mortgage with and ask can they take out or replace the vulture fund mortgage with a new mortgage with the bank. The difference can be as much as €400 a month or more depending on the size of the mortgage. Go to your credit union. And I would ask people today that go to the bank, to a high street bank or a credit union and look for a mortgage where they can show proof that they have been paying their mortgage to a vulture fund for the last number of years, making repayments for their mortgage. If they are refused by the banks, I would ask them to contact my office. And I will put it out on my social media today, my email address where they can contact me. It is absolutely outrageous that the banks that we saved in this country at a cost of €64 billion have flogged off a load of mortgages to a shower of vulture funds who are making massive profits on the loans that they have taken over. Making absolute massive profits. And it is unfair on the citizens of this country. The first duty of any country is to protect its citizens. And the least we can do is if there are high street banks that are now reporting profits in the billions, we see permanent ESP is up for sale at €2.6 billion. Bank of Ireland has returned €1.2 billion in profits this year. AIB has returned €900 and something million in profits this year. Surely these banks can take back on the mortgages of people who are capable of making repayments and allow those families to get some bit of respite. I am asking people now to go back to the banks and get the name of the person you are dealing with if you refuse the mortgage. And let's highlight this fully. For full public scrutiny, it is absolutely outrageous that people are struggling. And banks telling them six months, or sorry, two or three years ago, what they could buy for groceries and what they couldn't buy. It is outrageous. Thank you, Colonel. Colonel Martin.