A retired man has secured permission from the High Court to challenge the Financial Services and Pensions Ombudsman's refusal to investigate his complaint over loans he claims he was mis-sold by AIB.
Martin Mahoney claims the ombudsman's decision not to investigate his 2021 complaint, on the basis that it is outside the respondent's jurisdiction, is unlawful and should be overturned.
His complaint to the ombudsman arises from loans acquired in 2005, for €160,000 for 20 years and in 2008 for €30,000 for 17 years, by Mr Mahoney from AIB.
Mr Mahoneym from Corish Park, Wexford, was in his late 40s when he took out those loans.
The monies were borrowed for purposes including the acquisition of his family home, to refinance short-term debt, to refinance existing loans and are on course to be fully paid by 2025.
The core issue of his 2021 complaint to the ombudsman is his allegation that he was mis-sold the loans by the bank, which he contends were inappropriate and unsuitable for him.
He claims that because the loans were due to expire six years after he reached his mandatory retirement date, they were contrary to EU consumer law and an EU directive on unfair terms in consumer contracts.
He claims that following a preliminary opinion of his complaint, the ombudsman said in March 2023 that it could not investigate his complaint because he had alleged fraud against the bank. As a result, he claims that he withdrew the claim of fraud.
Jurisdiction
However, last November, the ombudsman said it did not have the jurisdiction to investigate his complaint, and that the complaint had been brought outside the allowed time limits.
Represented by Gary McCarthy SC, Andrew Walker SC and Brendan Hennessy Bl, Mr Mahoney seeks orders from the court quashing the ombudsman's decision, and that the respondent be made to consider and determine his complaint.
The action has been brought on grounds including the respondent has failed to have regard for the binding requirements of EU law on unfair terms, and is entitled to determine complaints involving allegations of breaches of the relevant directive.
The refusal to investigate the complaint is "entirely at odds with previous decisions made by the respondent, and is unfair, the plaintiff claims.
The refusal is also irrational, and unreasonable, it is alleged.
Allied Irish Bank (AIB) PLC is a notice party to the action.
The matter came before Ms Justice Niamh Hyland on Monday, who granted the plaintiff permission on an ex-parte basis to bring his action against the ombudsman.
The matter will return before the court in April.
