A leading law firm has come out in defence of banks, claiming borrowers ‘get what they want’ and are not victims of any wrongdoing.
Gadens Lawyers partner, Jon Denovan, said in the vast majority of cases where borrowers lost investments or homes, or declared bankruptcy, it was “not the bank’s fault.”
“It’s becoming increasingly incorrect to speak loudly and strongly in favour of lender’s rights. That doesn’t mean that consumers don’t have rights and that they should be properly protected,” he said.
“The law and EDR schemes are doing a great job of doing that. It’s just that the lenders aren’t the evil people so often claimed.”
He paraphrased the judgement on a recent case brought before the courts.
"Except for NCCP regulated loans, the law does not recognise any duty upon a lender to assess whether a borrower is able to repay a loan.
“Nor must the lender ascertain the viability of the loan or verify the details provided in the loan application. A lender is not a branch of a social services agency.”
He called for a more “realistic” approach in tribunal hearings and courts were issues of lender responsibility were concerned.
“The borrower gets what he or she wants. Borrowers are not victims and an attempt to portray themselves as such is simply at odds with commercial reality.”