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Solicitor-client accounts should not be subject to negative interest rates - Pa Daly TD

17 February, 2021 - by Pa Daly TD

Sinn Féin TD for Kerry Pa Daly has today called on banks to suspend charges on client accounts for solicitors, which have been hit by so called negative interest rate charges.

Teachta Daly said:

"Client accounts are used by solicitors to hold money on behalf of their clients, who are already suffering exorbitant interest rates. Banks will not send the mortgage money direct to their customers as they oblige solicitors to provide undertakings to comply with their requirements.

"Many solicitors are now receiving communications from banks that these accounts are to be subject to negative interest rate charges. In many other instances, solicitors are holding this money due to probate proceedings, meaning banks are also hitting grieving families at a vulnerable time.

"This is inappropriate given these accounts are merely used by solicitors to hold money in trust for clients and are not used for any other purpose. Irish mortgage holders already pay the highest interest rates in Europe, and the banks are now taking away even more from hard hit households.

"I have written to the Governor of the Central Bank on the matter and will be raising this issue with the Minister for Finance also."

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