# Ulster Bank signals intention to increase legal action



## Brendan Burgess (5 Jul 2013)

Very interesting information in this Irish Independent article 




> Ulster Bank told investors in London that it saw a lot of evidence of  "strategic defaulting". This is where people can meet their mortgage  payments but choose to use the money for something else.
> Mr Brown and fellow executive Stephen Bell said the bank would go to the courts to seek repossessions.
> 
> 
> ...


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## callybags (5 Jul 2013)

I think Ulster Bank are right.

Hearing about strategic defaulters makes my blood boil.

Anyone that is in genuine difficulty, fair enough. It's a huge problem and procedures have to be put in place to try and deal with the problem and have an end in sight; both for the bank and the mortgage holder.

Anyone who is found to be strategically defaulting (either not paying at all or deliberately falling into arrears in the hope of receiving some sort of write-down) when it can be shown that they can afford to pay all or more than current payments without falling into hardship as already defined should have the book thrown at them.

Large fines on top of penalty interest should be imposed to send out a signal to other would be strategic defaulters.


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## Gerry Canning (5 Jul 2013)

Brendan Burgess said:


> Very interesting information in this Irish Independent article


 If people are NOT at least repaying the equivalent of what it costs to rent a similar property then EVEN I have sympathy for a Bank (it was hard to admit that ).

I think the bubble of no-repossessions has to be burst. 
If defaulters won,t at least show cause ,why should they stay in situ ?

I would be inclined to think that when the reality of Repossions hits , defaulters will review their actions. 
Repossessions Could even end up as a blessing (of sorts)


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## oldnick (5 Jul 2013)

I wonder if U.B.'s mortage default rate is matched by the others ? If so we are all in deeper trouble. than we thought.

If not, then does this mean that UB are really a very inefficient  ,indeed negligently run, bank  which the govnt should on account take over  even if offered incentives by UK govnt ? If UB openly admit to such problems my suspicious mind makes me thing  there may be a lot more problems not yet known. Anglo again?


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## Brendan Burgess (5 Jul 2013)

Hi Nick

I gather that their First Active book is worse than average whereas their Ulster Bank book is better than average.  

Brendan


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