A Minister of State has suggested that the State might have to compensate people owed money by the Limerick company being investigated for financial irregularities. The Irish Mortgage and Finance Bureau Ltd, which was run by Mr Pat Foote, of Fairyfield, Parteen, Co Clare, has been closed. Clients are reportedly owed thousands of pounds.
Mr Foote alleges in a newspaper interview, published today, that he is being tried and convicted by the media without being given a chance to tell his side of the story. He gave an assurance that people would get their money back.
The Minister of State for Education, Mr Willie O'Dea, said in an interview yesterday that many questions needed to be answered. He added: "The question now arises: have the people who may have lost money a right to sue the State because of the way the Consumer Credit Act has failed to protect them, through no fault of their own?"
He said that the Dail had passed the Consumer Credit Act with a view to financial intermediaries being licensed.
Mr O'Dea told the Limerick Leader: "It is almost incomprehensible that the Director of Consumer Affairs, who was charged with this responsibility, takes such a laid-back view of his responsibilities. He merely circularised about 3,000 mortgage brokers last February and sort of lightly admits months later that he is still awaiting 1,300 replies. Either we are serious about implementing this legislation or we are not, and apparently the evidence suggests that we are not."
He continued: "Surely our eyes should have been opened by the Taylor affair and surely somebody in the Director of Consumer Affairs' office should have put in place a procedure whereby they should have arranged to publish in each area, through local media, a list of people whom they knew were acting as mortgage brokers but who had not replied to their request about registration. This could have been done months ago and they could have warned the brokers about this list being published, and that surely would have concentrated some minds."
Mr O'Dea called on the Director of Consumer Affairs, Mr William Fagan, to immediately publish a list of brokers who have not answered the letter about registration so that the public would be made aware of those who had not replied.
Meanwhile, taped conversations involving Mr Foote and clients and colleagues of his are being given to the gardai by the Limerick Leader.
Mr Foote claimed this week that everyone owed money from his company would be paid. Shortly after being released from hospital, where he was receiving treatment, Mr Foote said: "People owed will get their money back. I have a couple of deals going down at the moment. One is in Manchester. I want to clear my good name."
He told the Limerick Leader: "I am a man of substance, the people will be paid. I am extremely sorry for all the stress and anguish. But all the people will be sorted out. I am not hiding, I have nothing to be ashamed of."
Mr Foote was not staying at his home address and is understood to have been advised by gardai to "stay low", as "angry people" were looking for their money.
He claimed that he was owed money by certain individuals in the financial sector, including £47,500 from one source.
Mr Foote hoped that the deals he claimed he was involved in would not be jeopardised by his present situation. He said that there was no question of his company going into liquidation.
He has spoken to the gardai since his release from hospital.
Gardai are preparing a file for the Director of Public Prosecutions on the matter.
The Director of Consumer Affairs, Mr William Fagan, could not be contacted for comment last night.