Business Irish

Saturday 10 December 2016

Families get derisory €50k for bank rip-off that cost their homes

■ At least 22 families evicted from houses ■ PTSB expects bill to be more than €80m ■ Bank chief faces calls for resignation

Paul O'Donoghue and Sarah McCabe

Published 29/07/2015 | 02:30

Permanent TSB chief Jeremy Masding at a press conference yesterday to discuss the mortgage redress programme. Photo: PA
Permanent TSB chief Jeremy Masding at a press conference yesterday to discuss the mortgage redress programme. Photo: PA

The head of Permanent TSB is facing calls to resign as families who lost their homes in a mortgage overcharging scandal were offered just €50,000 in compensation.

  • Go To

Borrowers affected by the bank's errors were told to seek expert advice before accepting the "insulting" offer.

Permanent TSB, which is 75pc State-owned, will need at least €80m to cover potential fines and compensation.

The bank is offering €50,000 to people who lost their homes after being overcharged on mortgages. But some of those affected will get as little as €3,500.

Padraic Kissane, a financial adviser who is assisting many of those affected, said: "You can't quantify what this has meant to people ... it will be very difficult to compensate for the damage."

It is understood at least 22 families lost their homes.

Current CEO Jeremy Masding was not at the bank when an overcharging error affecting 1,372 customers first occurred.

But campaigner David Hall said the handling of the cases was "a disgrace" and Mr Masding should step down.

Irish Independent

Read More

Promoted articles

Editors Choice

Also in Business