Wednesday 26 October 2016

Brazen banks still won't give trackers back to borrowers

Published 01/07/2016 | 02:30

Teacher Paul Favier, his wife Corinna and son Conall Photo: Domnick Walsh
Teacher Paul Favier, his wife Corinna and son Conall Photo: Domnick Walsh

Banks are refusing to put homeowners back on tracker rates, even after admitting they were in the wrong - sparking calls for regulators to come down harder.

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Cases have emerged where banks admitted that mortgage holders should not have lost their trackers. These people have been offered refunds and compensation, but have not been put back on a tracker rate.

In most cases, they had switched mortgages to another bank after being denied the reinstatement of their tracker.

Despite the banks' admissions that they should not have lost their trackers, the homeowners are not being restored to the low-cost rates.

The Central Bank has ordered all banks to conduct a review of their tracker books after Permanent TSB admitted it had taken good-value trackers off 1,400 customers who should not have lost them.

The Central Bank is also taking enforcement action against Permanent TSB and Ulster Bank over their failure to put customers who fixed for a period back on their trackers.

Consumer campaigner and founder Brendan Burgess highlighted the case of Kerry teacher Paul Favier, who was told by Permanent TSB he should not have lost his tracker.

Mr Favier believes he ended up over-paying by around €30,000 over the five to six years that he and his wife Corinna were denied a tracker.

They took out a mortgage with Permanent TSB in 2008, at a time of rising interest rates.

Irish Independent

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