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Doherty condemns AIB use of non-disclosure agreement for mortgage deals

Buy-to-let borrowers signing the agreement are requested not to disclose any details of negotiations with the bank, including the fact that they are happening.

Image: Laura Hutton/Photocall Ireland

SINN FÉIN TD Pearse Doherty has today criticised AIB over a confidential non-disclosure document that is “being used by AIB to gag borrowers” in the buy-to-let market on mortgage deals.

The ‘Pre-Negotiation Non-Disclosure Undertaking‘, released by Doherty through a confidential source, requests that borrowers agree not to disclose details to third parties of any negotiations taking place to restructure their mortgages.

Borrowers signing the document must even agree not to disclose the fact that negotiations are taking place with the bank.

The document, which would be sent to the bank, after a signature is witnessed by a solicitor, agrees the following:

Not to disclose to any third party the fact that negotiations are taking place between the bank and ourselves and in the event that an agreement is reached between the the bank and ourselves to restructure our facilities, not to disclose to, or use for the benefit of, any third party the fact that such agreement may have been made nor to make known any details or information in any form (whether written, oral, visual or in any electronic form) relating thereto.

Commenting on the content of the agreement, Doherty said it “lifts the lid on the bank’s veil of secrecy on mortgage deals within the buy-to-let sector”.

“There are clearly deals being done, but in this instance, for what we have been informed is for the buy-to-let sector, AIB has produced a legal document to prevent any borrowers disclosing that they have even talked to their bank,” he said.

Pearse said that the document shows that leaving mortgage restructuring  in the hands of the banks will mean leaving them “to continue to act behind closed doors so mortgage holders do not know what they are entitled to”.

“This document proves mortgages are being restructured, but that the banks are hoping they can keep it from the rest of the populace,” he said. “It’s sneaky practice and it’s time for it to stop”.

A spokesperson for AIB told TheJournal.ie that the bank had no comment to make on the document.

Read: AIB commits to working out deals for mortgage holders in arrears>
Read: Personal insolvency agency to open ‘early in the summer’ – Taoiseach>

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