The owner of a £360,000 house in Foxrock, Co Dublin, claimed his efforts to meet home loan repayment arrears were being defeated by the addition of legal costs to his mortgage.
Mr Michael M.G. Webb, Tudor Lawns, Foxrock, told Judge Michael White in the Circuit Civil Court yesterday that £60,000 was outstanding on his mortgage with the EBS. He had been in arrears up to 1997 and had been attempting to reduce it by doubling his £425 a month mortgage instalment when possible.
"But I have been brought into court on six occasions and I have now been landed with a bill for £1,100 legal fees," he said. "As soon as I wipe out some arrears the amount is increased by legal fees."
Mr Webb said he paid off "some £6,000 this year alone" but the building society was making a bad situation worse. He said the society's branch manager was now telling him he could no longer discuss the matter with him at counter level.
He told Judge White he earned £30,000 a year and was periodically paid a £1,000 bonus.
When this happened it went towards paying a double instalment to reduce arrears. In an action against Mr Webb and Ms Anne O'Hara, the EBS is seeking to possess their home.
The society's application was adjourned to facilitate the furnishing of further information to the court. Judge White told a solicitor for the EBS that there had been no order for costs made by the court and legal fees should not be added to the mortgage.
A spokesperson for the building society said yesterday that mortgages contained an irrevocable clause whereby the borrower granted the building society his or her express written agreement to add legal fees to the mortgage in the event of litigation. He did not know if such a clause applied to the agreement between the EBS and Mr Webb and Ms O'Hara.