There have been two significant judgments relating to debtors in the Irish courts that change processes and procedures in dealing with banks and financial institutions.
The first of these cases involved vulture fund Mars Capital, the commercial entity which has acquired the mortgage portfolio of Irish Nationwide. The debtors in this case successfully gained a High Court injunction against Mars Capital for their failure to comply with two personal insolvency agreements which had been approved in the Circuit Court. The Personal Insolvency Act specifies that any breach of a court approved arrangement is an offence.
During the proceedings before the High Court, the representatives of Mars Capital admitted it had made a mistake, that there was an investigation into the cause of the breach and had set about ensuring further breaches would not occur. Furthermore, they issued an apology for their failure to engage and comply with the personal insolvency process.
The second case of note occurred in the civil Court of Appeal which has determined that those in debt have the right to have a fair and proper hearing before any application by a bank can be granted.
The Court made their decision based upon the right to be heard which was enshrined as a fundamental legal principle in both European and Irish law. The Court of Appeal decision presided over by Mr Justice Finlay Geoghegan and Justice Peart will have wide implications for those facing legal proceedings from financial institutions. This development will ensure that a debtor has the right to make full representation before the court before a bank can have an order granted against them. Its wide remit will include those being pursued for failure to meet mortgage repayments and those who have failed to repay credit card debts.