Business Property & Mortgages

Saturday 24 June 2017

Bank of Ireland admits over-charging thousands of its mortgage customers

(Stock photo)
(Stock photo)

Charlie Weston Personal Finance Editor

Bank of Ireland has admitted over-charging thousands of its mortgage customers.

It is the latest twist in the tracker mortgage scandal.

The bank had already restored 2,100 customers to good value tracker rates in 2010.

Now it says it has found another 600 cases where homeowners were wrongfully denied a low-cost tracker rate.

And the bank said another 4,000 mortgage customers do have trackers, but they were paying too much interest, the bank said.

It is understood that most of the mortgage holders either denied a tracker or charged the wrong tracker margin were bank staff.

However, the bank would not say how many of the latest cases relate to staff..

In a statement, it said: “The Bank of Ireland Group would like to sincerely apologise to each of these customers for these failures. The correct rate should have been applied to these accounts and we sincerely apologise for not applying the correct rate in these cases.”

Almost all lenders are being forced to probe their mortgage books and identify customers denied a tracker, or put on the wrong tracker interest rate, over the last eight years.

Banks had denied people trackers when interest rates rose in 2009, as these people opted to fix their mortgage rate, but then could not get back their tracker.

AIB has around 3,000 tracker-denial cases, with 2,000 at Ulster Bank.

Permanent TSB has had to compensate 1,400 customers over the tracker scandal. Its subsidiary, Springboard, was fined earlier this month over the issue.

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