Ulster Bank admits Central Bank taking action against it over customers losing tracker mortgages
Ulster Bank has admitted that the Central Bank is taking enforcement action against it over customers losing tracker mortgages.
This is the second bank to face an enforcement action from regulators over the issue, following the move against Permanent TSB last summer.
Ulster Bank’s parent, Royal Bank of Scotland, said in a financial results presentation: “Separately, on 15 April, the CBI [Central Bank] notified UBIL [Ulster Bank] that it was also commencing an investigation under its Administrative Sanctions Procedure into suspected breaches of the Consumer Protection Code 2006 during the period 4 August 2006 to 30 June 2008 in relation to certain customers who switched from tracker mortgages to fixed rate mortgages.”
The Central Bank has the power to administer sanctions for contraventions by regulated financial firms and bank managers if it finds there have been failings. Fines of up to €10m can be imposed.
Thousands of people had trackers wrongly taken off them and are now in line to have them restored, have over payments refunded to them and get compensation once the bank-wide review is finished.
The final number of families affected could be as high as 10,000.
But it will be 2017 before the industry-wide probe is completed, the Central Bank said this week.