Free legal help for struggling homeowners

STRUGGLING mortgage holders facing home repossession can get help from barristers on a no-fee basis under plans unveiled.

A group called New Beginning also said it will launch a number of test cases in the courts to see if banks and lending institutions broke a duty of care to borrowers through reckless lending.

If successful, it could lead to claims for damages against the lenders.

One of the co-founders of the New Beginning group, David Hall, revealed the idea of free legal representation was formed just two weeks ago after a case in which a Cork family had their home repossessed.

As reported in the Irish Examiner at the time, a mother-of-four broke down when speaking before Mr Justice Brian McGovern, claiming: “It’s just that there’s so much stress and I can’t cope with it.”

Anyone appearing before the Chancery Summons in the High Court can, from today, appear in person and seek an adjournment on the basis that they will have free legal representation from that point onwards.

In a separate development, the New Beginning group is compiling files so as to launch a High Court test case – effectively a classaction – in which 10 cases will be used to argue that lending institutions failed in its duty of care because of their excessive lending.

Mr Hall, the owner of a private ambulance company, formed the group with barristers Ross Maguire and Vincent Martin.

He said more than 20 barristers have offered to help represent people facing home repossession up to the end of the legal term next July.

Representation will first be open to those involved in cases taking place in courts in Dublin but the group hope to extend the scheme to other parts of the country.

Mr Hall said there was “no precedent” either in Ireland or overseas for the test case on grounds of duty of care, but in the event of a court victory, damages could then be sought from the lenders on behalf of home owners.

He also said those in negative equity would hypothetically also be entitled to then pursue damages on similar grounds.

The group is building an indemnity fund and said measures would be taken to ensure any homeowner involved in the 10 test cases would not be liable were the action to fail.

“We are giving no guarantees, no false hope,” he said, adding that “the borrower is not exempt from blame”.

“But the bank and the borrower have an unequal relationship and we are looking for the pain to be shared.

“The mortgage debt out there is so big and so horrific that it comes at a cost – economic damage, social damage, and mental health damage.”

The group said anyone seeking to access its services should contact its website – www.newbeginning.ie – from today.