Judge says banks must share the debt burden

Date Published: 27-Jun-2012

A District Court Judge has told banks and credit unions they were foolish enough to lend people money in the boom time and they now had to take the consequences for their actions.

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 view when it came to debts owed to shops and small businesses which 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 added.

In one case a debtor that owned 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 stated that this could take nearly 10 years to discharge.

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”.

See full story in this week’s Connacht Tribune.