Martin Mahoney, a pensioner, has succeeded in obtaining approval from the High Court to contest the refusal of the Financial Services and Pensions Ombudsman (FSPO) to look into his grievance concerning allegedly mis-sold loans from AIB. Mahoney contends that the FSPO’s dismissal of his 2021 grievance, arguing it to be beyond their jurisdiction, is both illegal and in need of reversal.
His objection to the FSPO originated from loans he took out in 2005 and 2008, amounting to €160,000 for a duration of 20 years, and €30,000 for 17 years, respectively. Coming from Corish Park, Wexford, Mahoney was in his late 40s when he secured the loans. The borrowed sum was used for a variety of purposes such as purchasing his family residence, paying off short-term obligations, and refinancing existing loans, all anticipated to be settled by 2025.
In his 2021 objection to the FSPO, Mahoney primarily argues that the loans being mis-sold to him were inappropriate and not suitable for his circumstances. According to him, considering the loan repayment period extending six years after his obligatory retirement age, this was in violation of EU consumer legislation and a directive pertaining to unjust terms in consumer contracts.
Mahoney further asserts that the FSPO, in their initial assessment of his grievance, dismissed the case in March 2023 as they could not probe into his accusations of fraud against the bank. He withdrew such claims thereafter. Nonetheless, the FSPO reiterated their lack of jurisdiction to investigate his case in November, reasoning that it exceeded the permissible timeframes.
Mahoney, represented by Gary McCarthy SC, Andrew Walker SC, and Brendan Hennessy BL, is now seeking court orders to overturn the ombudsman’s decision. He demands that the respondent is compelled to review and rule on his grievance.
The basis for the case is that the respondent neglected the compulsory aspects of EU law concerning unfair terms and holds the right to make judgements on accusations of violations of the applicable directive.
Mahoney alleges that the FSPO’s denial to probe his accusation contradicts their previous rulings, and is both unjust and illogical. The refusal is deemed by him as nonsensical, and unreasonable.
The Allied Irish Bank plc has been notified of the ongoing proceedings.
The case was presented to Ms Justice Niamh Hyland on Monday. The judge accepted the plaintiff’s request to proceed with his suit against the ombudsman on an ex parte basis. The case will be revisited in court this upcoming April.
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