Building Societies (Amendment) Act, 1986
|
Rights of member if charged tiered interest rate. |
5.—If a member of a society to whom a loan has been made is charged by the society a tiered interest rate in contravention of section 4 of this Act, the following provisions shall apply, namely— | |
(a) the member shall not be in breach of the terms of his mortgage if he does not pay to the society the amount by which any payment due on foot of the tiered interest rate exceeds any amount due on foot of the lowest rate of interest applicable at that time to loans made by the society to members generally and the society shall not, by reason only of such failure to pay, be entitled to exercise any remedy against the mortgagor which is otherwise conferred on it by law, and | ||
(b) the member shall be entitled to recover from the society any such excess paid by him as a simple contract debt in any court of competent jurisdiction. |