INBS members stand to gain cash fall

Brian O’Mahony Business Correspondent

That’s the good news. The bad news is that the process will take up to two years to complete.

It also depends on a willing third party interested in getting a relatively small 7% stake in the Irish mortgage market.

It is understood the society has ruled out a stock market flotation. That is a problem the society is trying to resolve.

It will take a change in the law to facilitate the society being partially or fully taken over by another financial institution.

Three months ago the government set up a review group to examine the options open to it.

That work is ongoing.

Meanwhile, Shane Hogan and Brendan Burgess are to propose a vote of no confidence in managing director, Michael Fingleton at next year’s annual general meeting.

They will also propose the society demutualises and submitted their list of resolutions to the company’s head office in Dublin yesterday.

Resolutions 1 deals with demutualisation and with the carrying out of a diligence report.

Resolution 2 calls for a vote of no confidence in managing director, Michael Fingleton.

Resolutions 3 calls for the introduction of a standard variable rate and payback of exorbitant penalty fines imposed on borrowers who fell behind in their loan repayments.

The final resolution demands a better deal for borrowers.

Brendan Burgess - chartered accountant and founder of askaboutmoney.com says over 160 disgruntled members have signed up to support the demutualisation motion.

Another 135 members have signed up to support each of the other motions, he said.

INBS is obliged to put these resolutions to the next annual general meeting, according to society rules, said Mr Burgess.

Members will be supplying a 300 word statement to support each of their resolutions, he said.

Explaining the actions Mr Burgess said INBS has “never acted like a mutual” and he wanted to see change in the interest of the members.

In his view the best way to bring that about is to go for demutualisation.

While aware of the review body set up by the government he thought it important that members start to find their voice at this stage.

Expressing reservations about how the society is run Mr Burgess said members late with their mortgage repayments can be hit with interest charges as high as 21%.

That was not good enough and he wanted to see sweeping changes in the organisation including the removal of the all powerful managing director, Mr Fingleton.

Last night a spokesman for INBS said the company was anxious to find a way out of its current dilemma to the benefit of all concerned.