Honohan asks if Noonan knows of AIB debt and repossession cases

The Master of the High Court has queried whether AIB's largest shareholder – the Minister for Finance – is aware of the extent of its litigation in repossession and debt cases.

Master Edmund Honohan, who deals with a range of administrative matters relating to cases on their way to the High Court, noted that about half of the 98 cases before him on Tuesday were taken by AIB and asked aloud whether the bank's "largest shareholder" was aware of this.

The State owns 99.9 per cent of AIB, with the shares vested with the minister, Michael Noonan.

Of the bank’s cases, most related to substantial debts exceeding €75,000 while 11 concerned possession proceedings.

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Both AIB and the Department of Finance declined to comment on Mr Honohan’s remarks.

In response to questions from the Oireachtas finance committee recently, AIB said there were 2,879 court hearings in progress relating to owner-occupied mortgage debt at the end of June, while 767 orders for repossession had been granted.

Some 569 properties were in the bank’s possession at half-year stage.

In 2,083 arrears cases, civil bills had either been issued or served on the account holders, effectively kicking off the legal process to repossess their homes.

Claiming exemption

Also on Tuesday, the Master, in a reference to Section 110 of the Finance Act, a recently closed loophole availed of by so-called vulture funds for tax avoidance purposes, queried if Emberton Finance Ltd, a fund that took over a man's loan from Friends First Finance Ltd, was a "charity" claiming exemption from paying stamp duty on the loan assignment.

Emberton has taken proceedings against the man over a mortgage taken out in 2008 concerning his home in Co Dublin.

The Master asked for evidence that the 2014 assignment of the Friends First loan to Emberton had been properly stamped, and adjourned the matter.

In another case, a couple with an address at Ballingarry, Thurles, Co Tipperary are challenging a repossession order granted to Springboard Mortgages Ltd, in 2014 by the Circuit Court, over their property.

Also adjourning that matter, the Master said the Circuit Court only has jurisdiction in repossession cases, which concern a “principal private residence”.

This couple maintains that when the possession order was made, they were living near Brisbane, Australia, and the Ballingarry property was empty, he said.