A Clare woman who was charged an interest rate of almost 20 per cent on a loan secured on her home has raised a legal action to challenge it’s terms.
The woman borrowed 125,000 euro over 12 months at a rate of 19.4 per cent from Secured Property Loans in 2008.
She was charged fees of 6,250 euro, and the total cost of credit was 28,750 euro.
A spokesperson for the company says all of their customers are told that the interest rates charged by them are higher than most banks and building societies and that they shuold to seek legal advice.
Last year, SPL failed to secure a summary repossession order on the woman’s home and today a full hearing on the matter will come before the high court – the woman’s case is that the rate of interest is exorbitant and the loan itself oppressive.
The case is seen as a test case for other borrowers set to lose property after taking out loans from sub-prime lenders after failing to secure credit from mainstream banks.
