Tuesday 14 August 2018

BoI has offered €130m in payouts to settle the bulk of tracker claims

Bank of Ireland CEO Francesca McDonagh said the tracker scandal had been a key issue for her since taking charge
Bank of Ireland CEO Francesca McDonagh said the tracker scandal had been a key issue for her since taking charge
Donal O'Donovan

Donal O'Donovan

Bank of Ireland customers have been offered €130m in compensation and redress payments so far in relation to the tracker mortgage scandal and most have accepted, CEO Francesca McDonagh said yesterday.

The bank set aside €170m last year to cover costs linked to the overcharging scandal.

The issue was the first question raised from the floor of the bank's annual general meeting, held at UCD in Dublin yesterday.

A significant number of questions from the floor at the sparsely attended meeting also complained about the reduction of services in branches, especially the impact on older customers.

The AGM was newly installed Ms McDonagh's first shareholder meeting, and the last for outgoing chairman Archie Kane, who'll be replaced in that role by former Paddy Power CEO Patrick Kennedy, a long time non-executive director.

Ms McDonagh said understanding the tracker issue had been a key issue for her since taking up her role last October.

She said 9,300 customers had been directly impacted, including 3,200 who'd suffered "relatively small" issues around the rates they were charged on home loans.

A bigger cohort of around 6,000 customers had a right to a low-interest tracker deal but were not properly offered that option. Most affected customers have been contacted and offered compensation, Ms McDonagh said.

"As of last week we had contacted 97.5pc of all those affected," she said.

Earlier, in an interim management statement, Bank of Ireland said new mortgage lending increased by 33pc year-on-year in the first three months of 2018.

Customer loan volumes were €76bn at the end of March, with new lending volumes exceeding redemptions by €0.1bn during the first three months of 2018.

Irish Independent

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