The High Court has allowed Barry Healy to defend Ulster Bank Ireland Limited’s claim for €612,712.96, plus interest and costs, at a plenary hearing. The decision concerns whether Healy has an arguable defence; it does not determine the bank’s claim or finally decide whether he was a consumer under the Consumer Credit Act 1995.
Ulster Bank brought summary proceedings over several loans, including an overdraft and continuing loan facilities. The judgment says the latter were apparently used to buy investment properties in the United Kingdom. The bank says the money is owed under the loan agreements. Healy, an accountant employed by a construction materials manufacturer, defaulted on the loans.
Healy told the court that he borrowed to buy property and shares as long-term pension-type investments for himself or his family. He argued that he was a consumer when he borrowed and that the bank had not complied with the Act. Ulster Bank described him as a business or commercial customer, arguing that he was not entitled to the Act’s consumer protections.
The judge said the central question was whether Healy borrowed while acting outside his business, trade or profession. The court considered it arguable that personal investments to provide for retirement or family needs did not necessarily make him a professional or property investor. It also said the bank’s classification of Healy, including whether he was served by a commercial manager, was relevant but not decisive.
The judge noted that a breach of the Act could, in some circumstances, affect whether a loan agreement was enforceable or the basis on which it could be enforced. Healy’s consumer-status argument therefore appeared significant. Applying the low threshold for leave to defend summary proceedings, the court granted him leave to defend at a plenary hearing. The judgment expresses tentative views on the parties’ cases and leaves the disputed issues for that hearing.