Hi I will give as near as possible a breakdown of events which proceeded our current predicament.
A partnership of two brothers and a sister ,lets call them Michael John and Mary . purchased a commercial / investment property in a Cavan town which cost the partnership € 540,00 including stamp duty. .Michael and John had no other investments ,Mary had a number of investments the details of same were not known.
In Nov 2005 we got a 20 year tracker mortgage with National Irish Bank for € 420,000 @ 1.3% plus Euribor the first three years interest only then 17 of interest and capital
The term in the offer letter which the bank relied on to call in our loan was "(b) if you shall default in the performance of any other term,condition or covenant contained in this agreement or any other facility or agreement with the bank and such default shall continue unremedied for ten days after written notice thereof shall have been given by the bank to you"
Sometime in 2010 we lost our main tenant due to the recession and the building remained empty for a few months so we asked the bank to give us 6 months interest only until we changed PP to a restaurant for which we had a client . We were in contact with our account manager at this time and he seemed happy with our progress. At that time we were struggling and we were 2 to 3 weeks late with our payments on 4 or 5 occasions .We had to pay €8000 to local council for change of use to a restaurant.
In April 2011 we received notice "from today we have stopped your account", a demand letter from Danske for the full 356,000 in 21 days because "we are not satisfied with the manner in which you have conducted your account".Michael was called into a meeting 2 days later and told to forget about the letter and told there was a miscalculation and in fact the partnership had over payed their mortgage by over € 15,000.We were then told instead of interest only for 6 months the bank would use the over payment to cover the following six months. No interest,compensation or apology.
On January 2014 Michael received a phone call followed by an email from N o C Danske banks credit manager offering a discounted settlement ,if we would refinance with another bank.
On April 2014 We received a demand letter. You have failed to make payment to the bank on due dates, we give notice we have stopped accounts, and exercise our right of combination and set off .(we were fully paid and up to date)
Our solicitor asked all the relevant questions in reply. He received no reply to 2 letters.
On May 2014 We received a demand letter. An event has occurred insofar as demand has issued in respect of other facilities you have with the bank .and account closed ,right of combination and set off.
On May and April 2014 we sent two more letters asking the bank all the relevant questions and advising them of the stress they were causing ignoring our letters, No reply.
On June 2014 Receiver appointed to property.
On January 2015 we received a summary summons
On January 2015 we entered an appearance
On July 2015 we complained to the FSO about 4 unanswered complaint letters
On August 2015 FSO accepts our complaint for dealing.
On August 2015 we received our first acknowledgement from Danske of the letters we sent in April 2014, and only because the FSO got involved
We have sent different complaints about wrong addresses on demand letters , overcharging,confidentiality issues and some of the lame excuses Danske made would make you laugh if it was not so serious .
On October 2015 we had a meeting ,Our solicitor, Michael John Mary and two of the banks reps .from the meeting the bank offered two proposals
1. Forget this all happened ,€ 5000 for our trouble and start paying our tracker over 10 years
2.lump sum of € 225,000
The two options were subject to withdrawal of FSO complaint and further legal action
So we asked the bank to drop this clause , they refused.
We are now waiting for the decision from FSO on adjudication before we progress .
I would be great-full for any comments and if you need any more info i will forward to the best of my ability.