Friday 20 January 2017

AIB to pay €190m in tracker mortgage compensation

Sean Duffy

Published 06/01/2017 | 07:38

AIB chief executive Bernard Byrne arrives at Leinster House yesterday. Photo: Tom Burke
AIB chief executive Bernard Byrne arrives at Leinster House yesterday. Photo: Tom Burke

State-owned lender AIB has set aside €190m to compensate customers who were wrongly removed from tracker mortgages, according to The Irish Examiner.

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The bank earmarked the payment in its most recent annual results released in March of last year.

AIB has reportedly also admitted it wrongly withdrew tracker mortgages from over 3,000 customers, confirmed that 14 people lost their homes as a result of the error.

The Oireachtas Finance Committee heard in recent weeks that 15 banks had been guilty of wrongly changing customer mortgage plans, with 20,000 loans across the country thought to be affected.

AIB has set aside €105m for the refunding of interest and compensation due to customers, in addition to an €85m for the “accounting impact” of the refunds.

Of the 3,003 accounts affected, AIB ceo Bernard Byrne confirmed that 2,230 had been sent letters of redress by the bank.

Last month, the Oireachtas Committee chair John McGuinness accused Central Bank governor Phillip Lane of being afraid to go after the banks over the scandal. Rejecting Mr McGuinness’ claims, Mr Lane said the duty of the regulator was to serve the public interest at all times.

The bank earmarked the payment in its latest annual results released in March of last year.

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