High Court Summons From Bank of Ireland UK re Custom House Capital Loan

Yellow Belly

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I was one of the unfortunates conned into investing into QIF1 with Custom House Capital in 2007. I had been offered 100s of opportunities to invest in these sort of funds previously but declined due to the properties repaying interest only finance i.e. the loan stood still so the property had to increase in value to show a return. With CHC it was outlined that the rents on the properties was sufficient to pay interest + a portion of capital each year i.e. if the property value stayed flat or even fell the capital amount on the loan would also be coming down year on year and at some point in the future the loan could be paid off. So it got me interested...

Then along comes Bank of Ireland UK who through CHC offered me €250,000 to invest in the fund with interest only repayments. Foolishly I accepted this loan and have paid almost €50,000 in interest to date (no repayments made since 2011 when CHC was placed in liquidation by Central Bank for misappropriation of client money & assets). They actually sold some of the properties within the fund I was in but never cleared the sale proceeds off the loans. You couldn't make up how corrupt they were.

To shorten a long story I am self employed and due to the downturn I am now heavily insolvent and would apply for bankruptcy in the morning but my only remaining source of income/business precludes me from practising if I go bankrupt. I am working with all my other creditors and have no judgement registered against me to date however Bank of Ireland UK have now lodged this summon against me- has anyone else had this experience?

At the end of the day I did sign the loan agreement so must accept responsibility for my actions but I do feel very aggrieved at a number of issues:

* what due diligence had Bank of Ireland UK done with regard to CHC?
* The QIF1 Fund hasn't been fully wound down/liquidated so it is impossible at the moment to say exactly what I owe or don't owe?
* Why was Bank of Ireland UK lending in Ireland for a Euro investment with Irish people into an Irish company- how come Bank of Ireland wasn't the lender- there must be a reason?

Just wondering if anyone else has had to fight this battle or deal with Bank of Ireland UK?
 
although I am in a different fund, and mine is still alive, (I am in practice too), I may have some info that will interest you.
email me at (prendos2003@yahoo dot co dot uk), and send me your number.

I wrote the dots as the message would not allow me put an email in for some reason
 
Hi- just sent you an email with my details there now- look forward to having a chat. Thank you so much for responding to my query. Regards
 
Yellow Belly

Can you not apply for a Personal Insolvency Arrangement or Debt Settlement Arrangement? What sort of practice are you in which where such an arrangement would prevent you from practising?

Brendan
 
Hi Brendan
I did put forward a PIA application through a PIP last year (2014)but it was refused by the lender with the largest voting rights even though it offered the banks a substantially better return than bankruptcy- almost all my creditors accpeted the application but the lender with the voting rights majority would not agree. It looks as if the lender had a policy to veto all PIA applications to avoid debt write off (not just my case)- my PIP advised that a bankruptcy application was then the only guaranteed method of extraction from my situation but in reality this isn't an option for me unless I want a career change so I am still burdened with a load of unsustainable debt.
 
Hi,

Maybe someone could assist with this query.

In 2006 I remortgaged my property with AIB to invest in property in Bulgaria which was never delivered. The estate agent that I used was based in Spain and went out of business in 2009.
My question is can I claim compensation from AIB for lack of Duty of Care in lending the money in the first place?

In 2013, there was a landmark judgment in the UK Court of Appeal (Emptage v Financial Services Compensation Scheme). The claimant had raised a mortgage on their UK residence to purchase a Spanish property which was never delivered. They were advised by a Financial Adviser who was, as required by law, regulated by the Financial Services Authority (since replaced by the Financial Conduct Authority). The Appeal Court ruled that the Financial Adviser had a duty of care in terms of risk and affordability and had failed in this duty. As the adviser had since gone out of business, the claimant had a valid claim against the Financial Services Compensation Scheme (FSCS) which exists to pay compensation where a regulated party no longer exists. If the adviser had still been in business, there would have been a claim against them.



The rules which apply to a Financial Adviser also apply to any regulated entity, which includes:

·Banks and Building Societies

·Investment Firms

·Credit Unions

·Mortgage and other Home Finance Providers and Brokers

·Insurers and Insurance Brokers

·Stockbrokers, Asset Managers and Financial Advisers

·Firms providing Personal Loans
 
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