Neo Financial Solutions

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Everybody who has or had a mortgage over the past 10 years needs to check the following:

  • Have you had a mortgage over the past 10 years? 
  • Either Home Loan or Buy To Let
  • Were/are you on a tracker?
  • Did the tracker rate go up? 
  • Were you moved off a tracker to a fixed rate?
  • Did your fixed rate expire and you were moved on to a new rate?
  • Were you offered a tracker rate?

If the answer to any of these questions is yes and you have not been contacted by your lender than you need to get some advice about possible compensation. Either call us 01 437 0908, email us at paul@neofinancial.ie or contact your own adviser to find out more.

We have an unprecedented theft admitted to yesterday by the Central Bank (CB) committed by Banks on the ordinary people of the country some of whom have lost their homes, been declared bankrupt and suffered family breakups because of it. The CB said yesterday that there is at lease 8,200 loans affected so we can be sure that figure will actually be 15,000+ given the CB history on getting things right! The number of cases already admitted by AIB, PTSB, Ulster Bank and BOI amounts to is over 10,000 just from these 4  major banks still operating in Ireland!

What is  worrying is that it is not being made clear what is actually the issue and who exactly is effected. So it is very likely that people who are affected are not being contacted by the banks and are not even aware they could make some claim! It is also very clear that not only home mortgages are affected here but Buy to Lets are also an issue.

Even more worrying is that it is the banks and their old auditing palls like KPMG, Deloitte and E&Y (former Anglo Irish Bank Auditors) are doing the investigating (the poacher keeping the estate safe from poachers!). So lets be clear the odds of the banks and their palls admitting to all of the cases are ZERO.

Banks are going to have to do a number of things for people who are effected:

  • Apply the correct low rate of interest
  • Repay any over charge (and not just reduce the loan amount but give you a cheque!)
  • If you have sold your property or worse still had to declare bankruptcy or entered into an insolvency arrangement you will ahve to be compensated for your losses.

Remember even if your loan was sold to a vulture fund you are still entitled to the proper tracker rate and compensation as if the loan was still owned by your original lender.

The Central Bank probe includes AIB (including EBS and Haven), Bank of Ireland, Permanent TSB, Ulster Bank, KBC, ACC, Bank of Scotland, Danske Bank, IBRC, Dilosk, Leeds Building Society, Pepper Asset Servicing, Springboard, Start Mortgages and Stepstone.

 



A very significant Judgement stopping Mars Capital and as a result, other so called Vulture Funds from continuing repossession cases started by the original owners of loans (in this particular case Irish Nationwide BS before the loans were sold).

I am amazed on how silent the media has been on this matter since it is so significant for so many people who were potentially facing homelessness.

The Judgement

The judge has ruled that Mars Capital is not allowed to substitute itself for the original lender in repossession cases started before 14th October 2014. In other words, if a repossession case was started prior to 14th October 2014 for a loan that is now owned by Mars Capital or any other Vulture Fund it is likely that that case will be rejected by the court and will have to be started all over again at circuit court level.

Judge McDermott held that the court could not be satisfied that all of the information contained in the files could be considered to be correct and that each case will have to be heard separately. The full judgement is contained here for anyone with the interest and time to read it.

So what does this mean?

  • For The Vulture Funds

For the Vulture funds it means that for every case which they wish to take repossession proceedings against they have to start that process all over again if the proceedings were started by the previous lender. In this case alone there are 583 cases which have been stopped and will have to be restarted. This going to be a very costly and time consuming process for Mars and the other funds who will find themselves in similar positions.

  • For The Borrower

For the borrower it will create some opportunities which did not seem likely prior to the judgement. Firstly, it will mean that anyone under threat of losing their home will now have extra time before this happens will be at least 12 months. Secondly, if the borrower is inclined to negotiate with the new lender the lender may be more inclined to either write down some of the debt and/or provide the borrower with a cash incentive to leave the property voluntarily! This will save both time and legal cost for the new lender.

What next?

If you or anyone you know is facing repossession of a property by a vulture fund they should immediately confirm when the proceedings were started and by whom. If they were started by the original lender, then the case will have to be stopped. DO NOT rely on the lender to inform you of this.

Once you have established your case needs to restarted you should contact the vulture fund to discuss a renegotiation. Remember the funds are facing much higher legal fees and much longer time to get their money back. Both of which they are always keen to avoid!

If there is anything we can help with or you want more information, feel free to call us on 01 437 0908 or email me directly on paul.carroll@neofinancialsolutions.com



Bankruptcy a real and quick solution

This week again I met a business man who lost everything he owned during the crash and has now clawed his way back to being able to provide for himself and family. It has been a long hard struggle having lost all of his assets including the family home. He has been left with hundreds of ‘000 of debts including banks, revenue and other creditors and no way to ever pay them off.

The banks, revenue and other creditors left him alone and he was lucky enough to get a job and the chance of a fresh start. Then the bank and revenue came knocking looking for their pound of flesh! He yielded to their pressure and has been paying €1,000 per month to them and has begun a downward spiral again giving himself or his young family no chance of recovery….. until he picked up the phone to call us.

There is no reason for this man not to go bankrupt, have it all over in 60 days, be debt free and keep all of his income to rebuild his life and his families security. He had already lost his family home, he had no chance ever to clear the large debts he had and by trying to pay something off them he was only adding to his hardship. The €1,000 per month he was paying to his creditors was the difference of his family getting back on its feet and not. It meant nothing to the creditors financially.

Bankruptcy is about recovery for past financial mistakes. In Ireland the financial mistakes were not necessarily made by those who have to go bankrupt (I have better personal knowledge of this fact) nor has bankruptcy been necessary for those who did make the financial mistakes. However, modern bankruptcy rules are here now and anyone who needs to use the new rules should do so. There is no shame in that. In fact it would be a shame not too!

So back to our new client (yes he is now a client!).  He has stopped paying his creditors, gathered the funds together to go bankrupt and engaged us all in a matter of days from contacting me by phone last week. When I talk to him I can feel the relief radiating from him already! He has taken control back and the future is bright again!

Bankruptcy is a positive not a negative!

 

Paul C Carroll

NEO Financial Solutions

+353 1 437 0908

 



The Irish Bankruptcy laws have finally been brought into line with a modern market economy allowing people who struggle with debt the freedom to become debt free and to have a new beginning and fresh start financially.
Irish bankruptcy law changes such as the one year term, three year payment orders, abolishing of the statutory sitting and re-vesting of the family home (if wanted) to a bankrupt after a three year period are all that we at NEO Financial Solutions have been lobbying for since 2012 and successfully achieved with the recent introduction of the Bankruptcy (Amendment) Act 2015.
The Bankruptcy (Amendment) Act 2015 also introduces some very significant penalties for anyone who tries to use bankruptcy to hide assets, evade creditors or generally misuse the process for anything other then for what it is intended for.
The Irish Bankruptcy law changes are retrospective so will apply to all who are already in bankruptcy with some minor anomalies depending on what date someone was declared bankrupt.



Reduce Bankruptcy Term to 1 Year

Categories: Bankruptcy
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  • People in Ireland facing bankruptcy are not fraudulent – the economic downturn financially crucified people.
  • As proven in other countries it is of greater benefit to the state for a debtor to have their debts written off and benefit from a quick reintroduction into society and business – long punishment periods stifle future business and the economy.
  • People should not be held down and punished for having to go through bankruptcy, have people not suffered enough for the last seven years? It is time to help people get back on their financial feet.
  • The economy of Ireland will benefit from people being once again financially solvent.


The significant number of homes which are facing repossession is growing every week and what is worrying is the number of reported “no shows” at the hearings by the owners of the homes. It is understandable that people who have been struggling for many years and now faced with repossession do not want to face the prospect of turning up in court not able to afford to be represented, and facing the banks strong arm bullying legal teams. The “fear factor” as some people have called it is alive and well however, the problem is not going to go away and eventually in the cases where people are ignoring the process a sheriff is going to appear looking to evict people.

There are cases where repossession is going to be inevitable and those people who are in that position will best be severed by facing up to it sooner rather then later. They have a possibility of at least keeping some kind of control over the process and the timing of the inevitable repossession if they engage with the court and bank. If you are facing court repossession you should call us on 01 4370908 or email me at paul@neofinancial.ie to discuss your options which may be more then you think even at this late stage.

Doing nothing is an option but taking that route ensures that you are kept in the dark about other possible options which may be better for you. These options could include bankruptcy, insolvency or agreeing a voluntary sale which could see you stay in your home longer and  stop the bank pursuing you for any negative equity for ever.

It is becoming clear that banks are now becoming very aggressive in cases where payments have not been made in years, very significant arrears exist and there is no engagement from the borrowers. And lets be honest it is about time the problem is fixed and the banks are fixing it the way they know how. It is up to the government to provide another solution and they are unfortunately in constant “discussions with interested parties” which seem to be never ending. We were promised a suite of new measures to address the problem and we are still waiting!

It is very clear that relying on a government solution is simply not going to solve a growing problem anytime soon so without some other intervention those facing repossession will have to either do nothing as lots seem to be doing or face up to it, engage and maybe find some resolution along the way.

What needs to be understood by people facing repossession hearings is it is not the end of the line for them. It is often possible to get some reprieve. If that is not what is desired then engaging and gaining control of the process is a better option then waiting on the knock on the door or the fear of what the postman is going to bring today!

We are available to talk to anyone in this position regarding their family home or any investment property they own on the phone at no charge and no obligation. I have been at that very place and understand intimately the process. So if you are looking for clarity give me a call on 01 4370908 or email me at paul@neofinancial.ie.

Paul C Carroll

NEO Financial Solutions

 



Bank accused of ‘abuse’ – Irish Independent

Categories: Bankruptcy, News
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Irish_Independent_29_05_2014

A LEADING bank has been accused of “abusing” a terminally ill woman who is in arrears into accepting a deal to leave her home.  Charlie Weston writes in the Irish Independent on Thursday 29th May. Read more



Bank’s treatment of terminally ill woman criticised – Irish Times

Categories: Bankruptcy, News
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Irish_times_29_05_2014

The Irish Times published an article on its front page today about Paul Carroll’s efforts to get a reasonable solution for a Tipperary couple. Read more



Another 11 cases

Categories: Bankruptcy
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Paul Carroll on Morning Ireland talks about the bankruptcy process with Cathal Mac Coile on Tuesday 20 May.  There were a lot of positives to take from the courts with Neo Financial successfully negotiating 11 cases in the Monday (19th) court session.

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RTE Primetime

Categories: Bankruptcy
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Is the new Personal Insolvency legislation fit for purpose?

Miriam O’Callaghan looks at the performance of the legislation and Paul Carroll makes the case for bankruptcy.
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