Wednesday 7 December 2016

AIB tracker redress plan still a year off

Donal O'Donovan and Charlie Weston

Published 09/03/2016 | 02:30

Photo: PA
Photo: PA

AIB mortgage customers who unfairly lost cheap tracker home loan deals may have to wait almost a year before details of a redress scheme are announced.

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The Irish Independent broke the news last week that the State-owned bank had set aside €102m to cover the cost of the tracker redress. It has set aside another €85m for "other related matters" as part of the review.

Only weeks earlier, the bank denied it had wrongly refused to restore trackers to about 3,000 customers. They paid higher interest rates as a result of failures by the lender that are now being investigated.

RTE reported last night that some AIB customers have been contacted by the bank and informed that refunds for overcharging will be paid - but offered no compensation details.

It is understood that a compensation scheme is in the works, but details won't be hammered out until the full review into the issue is finalised.

AIB said the investigation into the issue of tracker mortgages is still going on.

"Like other banks, AIB is carrying out a comprehensive and robust tracker mortgage review aimed at achieving a fair outcome for customers.

Review

"Our review is fully in line with the requirements of the Central Bank of Ireland (CBI). It is a significant undertaking and will take some time to complete.

"Additionally, its outputs will require review by the CBI and independent verification by a third party," the bank's statement said.

"The CBI expects significant progress to be made by all lenders before the end of the year and we will certainly be meeting all the CBI timelines."

AIB will contact all affected customers once the review is completed.

Irish Independent

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