AN UNEMPLOYED construction worker has brought a High Court challenge to stop a mortgage provider repossessing his home, which has been in his family for more than three centuries.
Robert Gunn had in 2007 secured a mortgage of €210,000 from Start Mortgages Ltd, secured against his home at Lyre, Lisselton, Co Kerry. After losing his job in 2008, he fell into arrears on repayments. Start brought proceedings seeking possession of the home with a view to selling it on.
In judicial review proceedings, Mr Gunn is claiming Start was not legally authorised to make the loan to him because it was not regulated by the State as required.
Start has denied that claim and argued the then consumer director of the Irish Financial Regulatory Authority had in 2004 prescribed Start as a “credit institution” within the State.
Mr Gunn, who is represented by New Beginnings lawyers, claims only the Central Bank has power to prescribe any entity as a “credit institution”. Yesterday, the court granted leave, on an ex parte basis (one side only represented), to bring judicial review proceedings against the Central Bank of Ireland, Ireland and the Attorney General. Start Mortgages Ltd is a notice party to the case.
Mr Gunn wants declarations including that provisions of the 1942 Central Bank Act did not vest, delegate or transfer the power to prescribe a credit institution to the office of the consumer director of the regulatory authority; a declaration the power to prescribe a credit institution is vested exclusively with the Central Bank; and an injunction preventing Start taking any further steps against him pending the determination of the case.