Martin Ferris (Kerry North-West Limerick, Sinn Fein)

I wish to raise a number of issues in regard to the manner in which mortgage companies deal with their customers. I was almost tempted to use the word "victims" regarding some of the cases with which I am familiar. In one case, involving a constituent, the lending company, which would be one of the better known pursuers of repossessions through the courts, appeared to be unwilling to come to an agreement regarding payments. This is despite the fact that the person in question only got into difficulties after losing her job and after years of never missing a payment. Her income has since increased and she can now begin repayments. However, the company appears to be unwilling to restructure her repayments even though the loan was relatively small - well under €100,000 - and she has paid back a third of the original loan. This appears to be a common issue with this company, which despite putting on a show of being reasonable and open to renegotiations in the striking of interest only repayments with somebody who is in difficulty following a drastic drop in income, actually behaves in the opposite manner. It has attempted to intimidate that woman and telephones her at her place of work and at home. It sends texts to her mobile telephone. When she changed her mobile telephone number, it was able to get the new number. That is the disgraceful conduct of a so-called lending company.

The other issue I wish to raise is even more sinister and involves the Wise Mortgage Company, which I mentioned in the House several years ago regarding what can only be described as extortionate rates of interest being charged to people taking out loans with the company. In some cases Wise is refusing to meet the people concerned who are making reasonable offers, including in one case where the borrower is prepared to pay back the original loan. However, through taking court actions, Wise seems intent on securing possession of the lands involved rather than recovering its loans. Apart from its manner in doing business, the company's owner, Mr. Ron Weisz, has several convictions for financial offences. In 1995, he was convicted in New York of fraudulently acquiring a bank loan. He also has a list of judgments against him in the US for unpaid debts. He also has a District Court conviction here from 1995 related to his advertising for people to deposit money with him. In a current court action which he is taking against a farmer, who, I believe, has made a reasonable offer, legal opinion is that Wise is in breach of 16 Central Bank guidelines.

How is he able to get a licence in this jurisdiction? In fairness, in 1999 the then Tánaiste, Ms Mary Harney, with whom I clashed several times, attempted to close some of the loopholes. However, despite that and despite the warning to farmers by the IFA and others, this company continues to operate, offering exorbitant interest rates, and continues to pursue repossessions aggressively, which would tend to suggest that in many cases the attraction of the deals it makes is that it senses the opportunity to get its hands on property.

While I welcome and commend the motion as a basis for debating the area of mortgages, I stress the need for legislation to deal with sub-prime lenders and also the need for the regulatory authorities to take steps to force certain companies to deal more sensibly with people in genuine difficulties, rather than pursuing them in the manner they do. I have seen evidence that a solicitor acting on behalf or Mr. Ron Weisz and on behalf of the person applying for the loan was a director of his company. I cannot understand how any regulator would allow that man to continue to do what he is doing to unfortunate people who took out loans. In one case a 9% interest rate was being charged and because of one repayment being late, it was doubled to 18%. Such people are vultures and we need legislation to deal with them.

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