Banks must not be allowed profit from pandemic, says Crowe

Galway senator accuses banks 'underhanded' behaviour by hiking standard monthly mortgage repayments

Banks must "not be allowed to profit" off the global Covid-19 pandemic by hiking standard monthly mortgage repayments, and the new Government must show that "this sort of underhanded nonsense will not be tolerated".

This is the view of Fianna Fáil senator, Ollie Crowe, who has condemned the banks for "continuing to charge interest during a payment break in the midst of a pandemic".

“Effectively what is happening is the standard monthly repayment is now being increased. In one case I am aware of, the couple took the payment break and did not have to pay their mortgage repayments of approximately €3,000 for these months, but their monthly repayment is being increased by €20, which, over the lifetime of their mortgage, will mean they pay in excess of €4,000 rather than the €3,000 they were scheduled to pay over these months.”

Senator Ollie Crowe

Senior government ministers are meeting with chief executives of the Banks to discuss the. Senator Crowe said it "must be made clear to the banks that this sort of underhanded nonsense will not be tolerated".

He said: "Everyone and every business in the country is having to make sacrifices during this pandemic. Banks are not immune from these sacrifices. Instead of increasing payments to account for interest during this period it should be a straightforward payment break without charging interest and the length of the mortgage should simply be increased by three months.”

 

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