Sunday 25 August 2019

Permanent TSB says it has redressed 76pc of customers charged wrong mortgage rate

Permanent TSB chief Jeremy Masding at a press conference to discuss the mortgage redress programme. Photo: PA
Permanent TSB chief Jeremy Masding at a press conference to discuss the mortgage redress programme. Photo: PA

Paul O'Donoghue

Over three quarters of the 1,372 mortgage customers who were incorrectly overcharged by Permanent TSB have received some form of redress, the bank has said.

At least 1,372 customers were due to be compensated by the Permanent TSB after it failed to inform them that they would be penalised for changing their mortgage terms by being blocked from moving to a tracker-rate deal down the line.

At least 22 customers lost their properties as a direct result of the error, and it may have been a factor in 39 additional cases, the bank has said.

Permanent TSB has promised refunds of the amounts overcharged, compensation and up-front payments of €50,000 and €25,000 to 61 people who may have lost homes or properties as a result of the bank's actions.

In a trading update issued this morning Permanent TSB said: "1,372 cases were identified in the mortgage redress programme announced on 28 July 2015 and as at the end of October approximately 76pc of those cases have been redressed."

It did not provide further details of on the redress scheme.

The bank also said that current account balances were up by 6pc compared to the end of 2014 with retail deposit balances at €11.2bn, which the firm said was in line was expectations.

It added that mortgage drawdowns have trended broadly in line with the same period last year “in a market which has not grown as fast as expected”

However, the bank said it views this as a “short-term supply lag”. Term lending drawdowns are up 34pc year-on-year albeit from a low base.

The bank aims to have deleveraged the remainder of its £2.4bn UK mortgage portfolio by June 2016.

It said its financial performance improved further in the third quarter of the year “to deliver in line with expectations with improving Irish macroeconomic performance contributing to continued reductions in loan losses”.

Permanent TSB said that operating expenses for the second half of the year will be higher than the first half due to the payment of the bank levy, which will cost the lender €27m.

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