Central Bank 'concern' at failure by banks over tracker compensation

Banks are refusing to compensate some customers who they denied a tracker mortgage, with other lenders making "unacceptably low" offers of compensation.

Two lenders have also failed to properly identify affected customers, the Central Bank said - writes herald.ie

A new update from the regulatory authority has exposed efforts by banks to avoid restoring people illegally stripped of trackers and refund them.

In an update on the tracker scandal, the Central Bank said more than 100 families and investors lost their houses due to banks denying them a low-cost tracker.

Another 3,000 cases have been admitted by banks, where mortgage holders should have had a tracker, or were given the wrong interest rate on their tracker, the Central Bank said.

Lenders are supposed to restore affected customers back to their cheap tracker rates, refund the over-payments and pay compensation.

The regulator said it has forced two unnamed lenders to go back and reconsider how they are carrying out their overcharging probe.

"The Central Bank is concerned that two lenders may have failed to identify populations of impacted customers or failed to recognise that certain customers have been impacted by their failures," it said in a statement.

Just a quarter of customers have received the money they are owed due to issues around their tracker, as well as being compensated for it.

This is because just three lenders have started their redress programmes. Only three have established their appeals process.

Change

Central Bank deputy governor Ed Sibley said in an address to bankers that they needed to change their approach.

"Governance issues remain prominent and there is strong evidence - none starker than in some banks and their approach to the tracker issue - that cultural change is still necessary," Mr Sibley said.

Two years ago, the Central Bank told 15 lenders to probe their mortgage books to identify customers wrongly denied a good-value tracker during the financial collapse.

Now, an extra 3,000 cases of tracker loss have been identified since March. This takes the total to 13,000, the Central Bank said.

Another 7,100 cases have already been settled, including 1,300 Permanent TSB cases, from a total of more than 20,000 cases.

The Central Bank said the numbers will rise further, with some estimates putting the eventual total at 30,000.

Most homeowners were wrongly denied a tracker rate after opting for a fixed-rate for a period. Another 40pc kept their tracker but were put on the wrong margin.

The Central Bank said 23 residential mortgage holders lost their homes due to the "failings" of lenders. Another 79 buy-to-let properties were lost.

In a briefing note, the Central Bank warned: "As lenders' analyses continue, this number will rise."

Read other news of Dublin on our site.

CentralBank failure compensation
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
3 views in november
I recommend
No recommendations yet

Comments

Post your comment to communicate and discuss this article.

Society
Inner City Helping Homeless are asking for the public's help in filling a Luas with gifts this Christmas. Fill A Luas asks the public to donate a shoebox of gifts to the homeless at Connolly Luas Stop on Thursday, December 6. This is the fourth year of the charity event. This year, Fill A Luas will be a week-long event to give people more time to donate a shoebox over the holidays with the aim of collecting more than the record of 20,000 shoeboxes. The pub...
Incidents
The sightings of UFOs over the coast by three sets of airline pilots has led to Ireland being seen as a hotbed of alien activity. It has emerged the crews who reported an unidentified object streaking through the skies over Co Kerry are not alone. Dublin Live has been inundated with reports of similar sightings around the country in recent weeks. The Irish Aviation Authority has begun an investigation into the appearance of the mysterious objects which wer...
Society
Ombudsman Peter Tyndall has expressed his disappointment that the Health Service Executive has not fully implemented the recommendations made in his 2015 investigation into the healthcare system. The Ombudsman's 2015 report, Learning to Get Better, found that many people were afraid to complain about the treatment they receive in hospitals and that many hospitals were not learning important lessons from complaints they receive.  The HSE and Department of H...
Society
A new programme aimed at helping immigrant teachers find work in Irish schools opens to applicants today. The course, at Dublin’s Marino Institute of Education, aims to provide immigrants who are qualified teachers, but not working as such, with the knowledge, skills, and confidence to enable them to find employment here. Recent research has found that while Ireland’s school student population is now highly diverse, teachers here continue to be overwhelmin...
Society
EU and UK negotiators have agreed a text that deals with the Irish border, RTÉ News understands. The text was agreed at around 9pm last night and then transmitted to Downing Street. While two well-placed sources have confirmed that the text was "as stable as it can be", they say it would not be correct to say that the negotiations have "concluded". According to both sources, there will be one backstop to avoid a hard border on the island of Ireland. The ba...
Politics
The Cabinet will meet this morning to consider developments around the draft text of a Brexit withdrawal agreement. Yesterday, Taoiseach Leo Varadkar put his colleagues on standby for this morning's meeting, which is due to be held at 9.30am. Mr Varadkar and the Tánaiste will update their Government colleagues on what has happened over the last 24 hours. It follows a meeting last night between Mr Varadkar, Tánaiste Simon Coveney, Minister for Finance Pasch...
Society
A number of events have taken place around the country and in Northern Ireland to mark the centenary of the ending of World War I. Locations where ceremonies have taken place include Belfast, Enniskillen, Cork, Limerick, Sligo, Kilkenny, Westmeath, Galway and Tipperary. In Cork city, Lord Mayor of Cork Cllr Mick Finn laid a wreath at the Cenotaph on the Grand Parade. He was joined by relatives of those who died in WWI and members of the Cork branch of the...
Society
The two men who were arrested in Athy, Co Kildare yesterday in the investigation into the murder of David Boland have been released without charge today. A file will be prepared for the Director of Public Prosecutions as the investigation continues, said a garda spokesperson. David Boland, 34, was stabbed multiple times during an incident on Duke Street in Athy, in the early hours of Thursday 1 November. A total of four people have been arrested to date as...
Society
Dublin City Council is set to spend €1.6 million on the removal of discarded chewing gum in public areas. The local authority is seeking tenders for a contract to remove gum from footpaths and pedestrianised zones throughout litter blackspots in its administrative area over the next three years. It expects to spend €1.6 million plus VAT on these services, according to tender documents. The huge cost of removing chewing gum from public areas comes despite r...