Landlords get go-ahead for class action against Bank of Ireland

Due to the state of the economy many banks are becoming more stringent when it comes to lending mortgages, which has led to many people struggling to buy their own home. This has put even more demand on the private rented sector, and while buy-to-let landlords are more likely to get mortgages from the bank, there are still difficulties some face when it comes to making sure they are getting a good deal and not end up paying for expensive fees and charges.

This is why landlords that have mortgages with the Bank of Ireland were extremely angered last month when they heard that the bank was planning on doubling the amount of interest for a large amount of their customers. Even though many of these customers have tracker mortgages that are allowed to have the interest increase and decrease over time, landlords are claiming that the amount the Bank of Ireland is increasing their interest by is unfair and is an abuse of their power.

A group of fifty landlords have therefore decided to issue a class act against the bank, and now it has been reported that they have been given the go-ahead to challenge the bank’s decision before it comes into effect in May. Leading the case is The Law Department principal Justin Selig, who said that he received a “very positive” response from the barrister after the law suit was suggested. Mr Selig went on to say: “It looks like the bank’s actions are open to challenge on a number of different fronts. What we need to do is work out how we are going to do it and get as many people involved as possible.”

Mr Selig also said that he is happy to help those that need advice when it comes to the Bank of Ireland increasing their interest rates, and he has also urged those affected to contact him if they want to join the class action. Discussing the case he said: “The Bank of Ireland is going to be using all the big legal firms. But I am not worried about that because we have got a good case and we have good people – we will bring in expert support.” Many landlords will also be covered by their landlord insurance for the costs of court and legal fees, meaning that we could see the group expand rapidly in the next few months.

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