BANKS FOR NOTHING
Taoiseach vows to tackle mortgage break outrage
MICHEAL Martin vowed to tackle greedy banks yesterday and said they shouldn’t make a fast buck from the coronavirus pandemic.
The Taoiseach added bosses could be hauled before the Health Minister for charging customers interest during emergency mortgage breaks. Mr Martin said: “A key principle at the outset was banks would not profit from these measures. “The Minister for Finance will be actively engaging with and reviewing this.”
Up to 80,000 householders have been hit with extra debt in the scandal.
GREEDY banks were yesterday accused of “profiteering” from people’s misery as coronavirus throttled Ireland.
And it’s claimed they misled the Government on interest charged to customers who took mortgage breaks.
On May 11, they told then Taoiseach Leo Varadkar and Finance Minister Paschal Donohoe not charging interest would damage Ireland’s credit ratings.
But Central Bank Governor Gabriel Makhlouf said no such order was in place. And yesterday the European Banking Authority said it did not approve of extra fees. Sinn Fein’s Pearse Doherty said: “This is banks profiteering from the Covid pandemic. People shouldn’t have to pay a Covid penalty. They tried to spoof Leo and Paschal but they were caught out.
“It is a scandal that the banking industry and their lobby group deliberately misinformed the Taoiseach, Minister for Finance and Minister for Business over an issue that has impacted almost 80,000 mortgageholders and saddled them with debt.
“It is also disturbing the Minister for Finance was unaware payment breaks without interest accrual were consistent with regulatory guidelines, when the Spanish government had passed legislation to provide for this more than a month before this meeting was even held. Today I have written to the CEOS of the five retail banks to clarify their position and will raise the issue with the Government. It is now clear nearly 80,000 mortgage-holders hit by Covid-19 will be charged.”
The Taoiseach said bankers should not be allowed to make a fast buck off the crisis. He told the Dail Mr
Donohoe could be hauling bank chiefs back in to discuss the controversy as he is reviewing their policies.
Mr Martin added: “A key principle at the outset was that banks would
profit from these forbearance measures. The Minister will be actively engaging with and reviewing this in light of statements by the EBA.”
He was speaking after Labour’s Ged
Nash, highlighted the unfair actions of the banks. He said: “Several EU countries have acted and legislated in line with the European Bank Authority guidelines to protect households and families to ensure no interest is added to payment breaks.
“But yet again, in Ireland we have a Government that prioritises the interest and profit margins of banks over that of working people.
“The Labour Party motion in the Dail will demand the Government takes action on rent debt and mortgage arrears.
“We want the Government to stop the charging of interest in line with European rules and Central Bank advice.” But Banking Payments Federnot ation Ireland chief Brian Hayes said it would create a moral hazard if noncovid affected customers could not get interest-free breaks.
He added: “Irish lenders moved rapidly in March to make the Payment Break available to any customer impacted by Covid-19 and adhered to longestablished precedents... which were reinforced through EBA Covid-19 guidance on April 2. The Payment Break is offered on the same conditions as in the past and we believe it is important we have fairness of treatment across the board for past, present and future customers.”
A principle was banks would not profit from measures
MICHEAL MARTIN YESTERDAY