Vulture Fund in High Court Over Unfair Mortgage Interest Rate

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In a case with potential implications for numerous mortgage holders, Darren Hennessy and Emer Barrett of Cork have taken legal action against Pepper Finance Corporation Ireland DAC, which they refer to as a ‘vulture fund.’ Pepper Finance Corporation acquired the couple’s mortgage originally from Permanent TSB. The crux of their case is the substantial interest rate disparity they face. Vulture Fund in High Court Over Unfair Mortgage Interest Rate

Currently, Pepper is charging them an interest rate of 8.5%, whereas if their loans had remained with PTSB, they would be paying just over 4.3%. The couple argues that Pepper is obligated to maintain the same interest rates as those offered by PTSB. Pepper has attributed its rate increases to market conditions, citing recent moves by the European Central Bank to address high inflation. However, the couple disputes this justification.

The couple, represented by legal counsel, seeks several orders and declarations, including a declaration that the mortgage interest rate they are charged is disproportionate and unjust. They want the court to compel Pepper to apply the corresponding interest rate as PTSB would and declare that charging a higher rate is unlawful and breaches EU regulations on consumer contracts. Additionally, they seek damages for alleged breaches of contract and statutory duty.

The case is seen as having broad implications for other mortgage holders. The couple is acting urgently as the increased interest rates are significantly impacting their finances, adding €7,400 annually to their mortgage costs. The case is grounded in the ‘Braganza duty,’ which requires contractual discretion to be exercised reasonably and in good faith. Pepper is accused of failing to consider relevant factors, and their decision to increase interest rates is considered unreasonable and unjust.

The court has yet to make a final decision, and the case may have far-reaching consequences for others in similar situations. Stay tuned for updates on this important case. Vulture Fund in High Court Over Unfair Mortgage Interest Rate

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4 thoughts on “Vulture Fund in High Court Over Unfair Mortgage Interest Rate”

  1. I am in the same position as these people with pepper finance ptsb sold my mortgage to them a few years ago I am also from cork paying a rate of8.5 % when I contacted pepper they told me they do not do fixed rates and since them my mortgage just keeps going up I would really like to talk to these people in cork to no what I can do to stop this

    1. We should join together as there must be thousands of us. Looking forward to hearing on the outcome of this from the high court

  2. I’m im the very same position my mortgage has double since this time last year .I’ve wrote letters etc… but they are impossible to work with interest rate now 7.25 I think that’s a great idea let’s all join together up there or try and back them up ..I can’t go on im a single mum paying 1300 a month yes I work but I can’t continue

  3. I’m also in a similar position with my BTL mortgage transferred from PTSB in now on
    10.3 % .
    And what is The financial regulator going to do for customers about this . . . .?

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