A couple allege a debt purchaser is attempting to sell part of their farmland on foot of IR£61,000 loans the Irish Bank Resolution Corporation (IBRC) told them were paid off in full 12 years ago.
High Court judge Ms Justice Siobhán Stack said this will be a “truly astonishing” case if the 2012 letter saying the debt was serviced and the IBRC no longer holds any interest in the folio proves to be correct.
She noted she has yet to hear from the defendants: debt firm Pepper Finance Corporation (Ireland) DAC and receiver Colin Gaynor.
However, she was satisfied she could make orders, sought by husband and wife Liam Philpott and Anne Pounds, temporarily restraining a planned auction of 9.2 acres of land from going ahead. The case is due to return to court next Wednesday, when the defendants can respond to the claims.
The farmers allege the €27,694 Pepper says it is owed is “fictitious”, while the alleged arrears and interest applied are a “sham”. They say the firm and Mr Gaynor have put 9.2 acres of their land up for sale at a price of €110,000. This is many multiples of the alleged arrears, which they deny they owe.
In a sworn statement to the court, Mr Philpott, with an address in Kanturk, said he inherited 113 acres of land, with road frontage, at Boherascrub, west Co Cork, in 1987 from his father. He secured finance from Irish Nationwide Building Society (INBS) for £55,000 in 1990 and took out a second loan four years later for £6,000. Both loans were due to expire in 2010.
Before its collapse and takeover by the IBRC, Mr Philpott said, he was in dispute with the INBS over its “mismanagement” of the mortgage accounts and had made some complaints to the predecessor of the Financial Services and Pension Ombudsman.
While his disputes were recorded with the ombudsman, he said, he received a letter from the IRBC in 2012 stating the loan term had expired, all money owed to the society had been paid and the IBRC no longer held any interest in the Boherascrub site.
Relying on the letter, Mr Philpott cancelled his direct debits but both “loans” were later sold to Shoreline Residential, which sold these on to Pepper. He said the agricultural lands have been mischaracterised as residential property.
In March of this year, Pepper issued an “incoherent” seven-day demand for payment of €15,840 “arrears” and €11,854 “interest”, he said. He was informed in April that Mr Gaynor, with an address on Marine Road, Dún Laoghaire, Co Dublin, was appointed as receiver over certain assets.
Mr Philpott said Mr Gaynor made a further demand claiming rights to take possession of 113 acres of farmland valued at about €2 million for the purported arrears and interest on arrears.
On July 4th, he said, he found a “for sale” sign on a parcel of his land and later discovered about 9.2 acres were being advertised online.
He said his legal advisors have said Pepper is precluded from making any claims since August 15th, 2012, due to the IBRC letter.
The couple’s counsel, Michael O’Doherty, on Wednesday secured short-term orders preventing the sale of the land until further order.
Ms Justice Stack said the one-sided evidence before her presents a strong case, with the 2012 letter appearing to be a “very clear” indication that the charge was vacated. However, her view could change depending on the defendants’ response.
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