This afternoon.

Further to the introduction by AIB and Bank of Ireland of a new charge, ‘negative interest’, on all monies including home mortgage loans held in solicitor client accounts….

“The banks have wrongly included solicitor client accounts in their general application of negative interest rates, which they maintain apply to savings accounts. Solicitor client accounts are not savings accounts; they are a necessary part of commercial and conveyancing transactions.

“Put simply, when a person is paying out their borrowed money to complete the property purchase they will have less money than when they received the loan. A similar situation will exist for those who are selling and paying off a mortgage. As a direct result of this charge, they will need to have additional money to make up the difference.”

President of the Law Society of Ireland, James Cahill



Law Society calls for client account exemption from new bank charges to reduce unnecessary financial burden on prospective home buyers (Law Society)

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22 thoughts on “False Negative

  1. Brother Barnabas

    through greed, arrogance and stupidity, the mainstream banks opened the door into retail banking to the likes of revolut etc, which are in the process of tearing the banks a proverbial new one

    the fintechs must be laughing their botty-portals off at this latest move

      1. Brother Barnabas

        I didnt say it was a bank

        it’s a financial tech platform that provides a load of retail banking services- and a lot of the very services that irish make a big whack of their fees on

          1. Brother Barnabas

            i’m aware of all that, johnny – know it inside out as it happens

            are you trying to make a point ?

          2. johnny

            ..lost me bro whats all this gotta do with negative interest rates ?
            is there some correlation btw “the likes of revolut etc” and the post -hahaha.

      2. millie bobby brownie

        Really? I’d assumed they’re a bank.

        It’s not for want of trying tbf. They’re constantly adding new services so I imagine that’s the end game for them and companies like them.

    1. johnny

      -you get mortgage for 1 million.
      -wired to solicitors ‘trust’ ac to close on your starter home or corpo flat.
      -bank’s have negative vig these days-instead earning the overnight interest rate they charge you to keep your cash safe:)
      resulting in a shortfall at closing

      WTF-OMG how do they get away with it oh lordy,cause unlike Revolut insurance.

      “Revolut already holds an e-money license in the U.K., which allows it to offer digital cash alternatives and online payments. The firm obtained a European banking license in Lithuania in 2018 that it’s using to roll out banking services in central Europe.”

      …as if consumers ever received a cent this overnight interest.

      1. curmudgeon

        AFAIK this situation has come about because legally we must use the services of a solicitor for certain things, like mortgages. Banks see that money sitting in trust and are now trying their luck.

        1. johnny

          …the ‘situation’ negative interest rates exist and has for quite a while,the law society are basically demanding special status for the wealthy lucky enough in FFG Ireland to qualify for a mortgage…
          do they even pass this on,or have they been,when rates are positive ?
          …next they will want this applied to rent/security deposits,oh steady on.

          1. Paulo

            It’s more of an administrative point than “what greedy person gets all the money”.

            If X Bank pays your solicitor €250,000 today from your mortgage for your new (€250,000) house you are going to be completing on on Thursday, and the bank account in which this €250,000 (belonging to you) is held is debited €4 each night due to negative interest rates, then there ain’t going to be €250,000 in the account on Thursday to pay for the house.

            Nobody is getting rich from this nor is anyone losing lots of money but it is going to be a massive pain. Do you draw down €250,012 to cover the interim charges? What if it is all delayed for three days for another reason?

            They should just exclude these accounts (these are just special accounts where solicitors hold clients’ money – they will still be charged negative interest on their office accounts).

            and on the above question – yes solicitors have been obliged to pass on interest earned to clients if earned in a period holding their money. Again not likely to be large amounts unless you are either dealing with huge sums of money (ie, not a personal mortgage) or you are holding the monies for a long long time.

          2. Cian

            In my (limited) experience, the solicitor will take her cut before anything else.
            So if I there is 250,000 lodged today, the solicitor will subtract stamp duty and other taxes, take her €4,170.55 fee; and send me the remainder (less any interest that the bank took).

            it would rarely round nicely.

          3. johnny

            -solicitors have been obliged to pass on…hm.

            “In Superman III, this particular scam takes shape when Gus Gorman (Richard Pryor) receives his first paycheck for $143.80, and a colleague tells him that his paycheck probably includes a half-cent extra due to taxes and other calculations. Because Gus is an inexplicable computer genius, he writes a program for the company’s computer system to gather up all of these fractions of a cent for him…”


            -its just basic math,post closing adjustments are not unusual,its not ‘one shot’,regarding who should pay….it appears the law society is a tad upset over a fee/expense the client would pay,unless…

          4. Paulo

            Cian – not how it works. A bank won’t give you a 25/30/35 year mortgage to also pay your solicitor’s fee. The mortgage would generally just cover (up to) 90% of the house price. In reality for a 250k house the bank will pay your solicitor 225k. You will pay your solicitor 27,500 for the rest of the purchase price and to pay the stamp duty. After all that is done the solicitor will send you a bill for whatever fee you agreed and you will pay it like you pay your mechanic or whatever.

          5. johnny

            ..oh no,found out again,shur what would i know about RE,i’ve only been everywhere except the closing table,wha…:)

            the flaw in the law society’s position is the cohort does not evoke much sympathy.

            with this nonsense,something is rotten in the state……

            “The planned package includes one two-bedroom apartment with an indicative cost of €964,030 to the council as part of the Ronan Group’s Waterfront South Central scheme for Dublin’s docklands.”


          6. jungleman

            Literally anyone who buys a house needs to use a solicitor’s client account. This isn’t about the mega rich.

            A bit of advice johnny: a little knowledge is a dangerous thing. And you appear to have very little knowledge.

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