On the programme the RTÉ Investigations Unit revealed that the money loaned to borrowers was the proceeds of one of the biggest tax frauds ever seen in Britain. For a number of years HFC funded mortgages for properties across Ireland at very high interest rates. These high interest rates saw one loan of £40,000 in 1997 become €1.4 million today.

The company’s main target was asset rich, cash poor farmers across rural Ireland. One of HFC’s victims was Frank Keyes, a farmer from Co Laois. Keyes owes the HFC a sum of €710,000 and says he often feels “suicidal” with the thought of going bankrupt and losing his house and livelihood.

The lady living in rural Ireland who took out the loan of £40,000 that spiralled into €1.4 million wished to remain anonymous but she told RTÉ reporter Conor Ryan her troubles began when she was late with one payment. The late penalty interest jumped by 50% and two years later monthly repayment demands were four times the original amount of the loan. Five years on the repayments were ten times that. Now the mortgage is raking up interest at a rate of €28,000 per month.

Regulations

The programme looked at the faults in the Irish subprime mortgage regulatory system that allowed such high interest rates to be applied. Despite many changes in regulations over the years, culminating in the last change to be made in under the Fianna Fáil government in 2007, HFC managed to find loopholes in all the new laws.

Watch the programme here