Breech of contract? Danske bank

kennM

Good evening legal eagles,

I know there is a thread already running on this regarding keeping in touch but I wanted to get initial thoughts from a legal perspective around Danske bank pulling out of Ireland.

One of the specific issues at hand are around Offset Mortgages. Essentially the way offset mortgages function is that all funds in your current account(s) offset against the mortgage payable on your mortgage. Simple example: if you had €50,000 in your current account and a €200,000 mortgage your interest payable would be on €150,000.

Danske bank are essentially pulling out of retail banking in Ireland and as such all credit cards, current accounts, etc. are being closed. They are keeping their mortgage book and customers are expected to provide alternate account details to fund the mortgage.

As you've guessed it this essentially completely negates the benefit associated to an offset mortgage. I've personally gone through the signed T&Cs at the time of opening and there is nothing explicitly permitting said action. In response to another complaint they have rolled out T&Cs dated Nov 2012 with a clause within. They have never signed a copy of these T&Cs.

My own personal views are that they are trying to welsh out of product that is no longer convenient to them and are breaching T&Cs but can't be 100% black and white hence getting initial thoughts here....

Cheers all : )

Pat Mustard

Interesting. The offset mortgage is potentially a big money saver for you, the mortgagor. This is what you contracted for, and now you believe that they are trying to get out of their obligations.

You could take up a copy of the loan offer and the mortgage deed from your solicitor. If you read those, which will not be fun, you may have a better picture of what has been agreed between you and the bank.

Quorom

The Financial Services Ombudsman's office has ruled against Danske Bank's action with regard to the offset mortgages. The F.S.O. has directed the bank to return all borrowers to the original terms of their offset mortgage conditions and to adequately compensate all borrowers affected. This adjudication was not appealed by Danske bank to the high Court.

Pat Mustard

Do you have a link? I didn't see it on the FSO's website.

JimsAlterEgo

Pat Mustard wrote: »

Do you have a link? I didn't see it on the FSO's website.

still havent heard of this anywhere

kennM

JimsAlterEgo wrote: »

still havent heard of this anywhere

Given the number of mortgages it has probably hasn't made the news. In my case (and others I believe also) the FSO found against Danske Bank and had to give the customers the option to reinstate the Offset Account. it was with reduced liquidity, one withdrawal per month & had to pay some compensation for putting customers through what they did