Consultant sets up ‘NAMA beag’ for homeowners

A NAMA-style initiative which will attempt to force banks to negotiate with ordinary mortgage holders has been established by a Cork-based consultant.

Retired solicitor Andrew Dillon said it was time ordinary people who had been lent extraordinary amounts came together and forced action.

NAMA Beag will act as a discussion and advisory service for people in negative equity, and who cannot meet their repayment conditions.

Mr Dillion said banks had made “dreadful decisions” and owed a duty of care to the people it had given such extravagant loans to.

He said if enough people signed up to the initiative, it would start a people’s revolution similar to the way the Land League had fought for tenants in the 1800s.

“The Government has made no provision whatsoever to assist people who purchased all these houses at hugely inflated prices, and is asking the same people not only to repay their debts in full but also to repay the debts of the Government’s friends and financial supporters, the builders,” he said.

Mr Dillon said as part of his work, he frequently met people who simply did not know what to do.

“The banks were aware these people were unable to afford what they were getting. People were borrowing six times their salary – nothing is happening at all for these people.”

Practically, NAMA Beag will only work if a large number of people sign up.

People signing up will have to pay a registration fee of €50. They will then give information such as amount of the purchase price, name of the builder/ vendor, name of the builder’s bank and other such information.

NAMA Beag will then encourage its members to simultaneously cease payment of mortgages to all financial institutions until such time as negotiations begin.

The website namabeag.com is set to go live next week.

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