Banks Barred From Adding Legal Charges to Mortgage Arrears

Mortgage lenders can no longer impose legal fees and other charges on borrowers in arrears who are co-operating with their bank to resolve the issue, The Irish Times reported. The Central Bank has written to all the main Irish lenders, reminding them of their obligation not to impose charges on borrowers ahead of a decision by a court on whether to repossess a property, or of a settlement between the two parties. It also said costs cannot be added to a mortgage account until a borrower was in a position to redeem the debt and had requested to do so. The decision has been welcomed by advocates for people in mortgage arrears who said imposing charges on borrowers was confusing and upsetting. Read more