€88,000 loan soars to €1.39m

A Tipperary couple who took out a loan for €88,000 almost 14 years ago now face a demand of €1.39m.

Yesterday, a subprime lender asked the High Court for an order granting it possession of the couple’s family home on foot of a failure to pay €1.39m due now on the IR£70,000 (€88,000) loan taken out in 2001.

Vivier Mortgages Ltd, formerly called Home Funding Corporation, wants the court to re-enter a repossession order it obtained in 2007 against Patrick Cummins and his wife Christine Cummins in respect of their property at Hills Lot, Rosegreen, Cashel, Co Tipperary.

The couple — who are in their 50s — opposed the application.

The lender claims in September 2001 the couple drew down the monies loaned to them by Vivier, which was advanced on terms including an interest rate of 2% per month. The property was put up as security for the loan.

In proceedings before Mr Justice David Keane, the company claims the couple only made eight out of 158 repayments due on the loan, totalling €26,000. No repayments have been made since 2011. As of July 2014 the amount the lender claims is due and owing is €1.39m..

The couple’s lawyers asked the court to use its discretion not to re-enter the order for possession. In reply the lenders reject the couple’s claims and argued the incarceration of former Vivier owner Ian Leaf, now called Ian Andrews was not relevant to the proceedings.

Mr Leaf had nothing to do with the running of the company, the lender said.

Following the conclusion of submissions, Mr Justice Keane said he was reserving his decision. He listed the case for mention later this month.