Credit unions and banks shouldn't have been so flaithúlach with loans — Judge

A JUDGE warned at Tuam Civil Court that he was more concerned with ensuring businesses were paid monies owed than recouping outstanding loans for financial institutions which shouldn't have been so flaithúlach with their money in the first place. He said such bodies now had to take the consequences of their actions.[private] Judge Geoffrey Browne made his comments as he issued instalment orders for as little as €10 per week on loans issued by banks and other lending institutions to individuals. However, he said that he would be taking a different approach when it came to debts owed to shops and small businesses that needed this money in order to survive into the future. 'But as far as I am concerned the banks and credit unions have plenty of money and they can protect themselves. 'The bottom line is that if they were foolish enough to give money out to people when times were good, then they must face the consequences of their inability to pay this loan back', Judge Browne said. In one case a debtor who owed a bank more than €4,000 was asked how much he could pay back. He replied that he could afford €10 per week. The Judge then ordered that the debtor pay €40 per month to which a solicitor representing the bank protested that this could take nearly 10 years to discharge the debt. Judge Browne replied: 'I don't care if it takes 20 years. They should not have been so free about giving out money in the first place'. In another case an estranged husband and wife owed Bank of Ireland more than €25,000 and she informed the Court that she had made an offer of €10 per week â€â€œ it would take 52 years to pay off the loan. The wife said that each had their own property when they purchased a third costing €200,000 and this was now valued at less than €100,000. The rent they were getting for the house was not even covering the mortgage. She added that her only income now was a disability pension of €219 per week. The Judge advised the solicitor representing the bank to seriously consider the offer on the table and adjourned the case to the next sitting. However, those debtors who did not turn up in Court or were not represented by a solicitor, had instalment orders issued against them for the full amount requested by the creditors' legal representatives. The Court dealt with nine cases in which the debtors owed a total of more than €150,000 but Judge Browne said that he could not do anything for those who did not appear and face up to their debts. 'If they come to Court and explain their situation, then they will get a fair hearing and will be dealt with in a manner which will be very accommodating to them', he added. [/private]