Tuesday 28 January 2020

Number of customers impacted by tracker mortgage scandal rises

Central Bank has warned that more cases will be identified.. Photo: PA Wire
Central Bank has warned that more cases will be identified.. Photo: PA Wire
Charlie Weston

Charlie Weston

BANKS have owned up to thousands of new tracker mortgage cases.

An additional 3,400 customers have been identified by the banks who were overcharged.

This means the total has now shot up from 20,000 cases last September to 37,100 now.

And the Central Bank, issuing its latest update on the tracker mortgage probe, has warned that more cases will be identified.

Earlier this year this publication reported that the total number of cases was likely to top 40,000.

Refunding and compensating customers affected has already cost the 15 banks involved in the tracker mortgage investigation around €1bn, with the final figure now expected to go even higher.

Those who lost trackers, because banks refused to put them back on the low rate when they fixed for a while or when they restructured their mortgage, are being put back on tracker rates.

They are also getting refunds of overcharged interest – referred to as redress by the Central Bank – and compensation.

So far €459m has been paid out in redress and compensation by lenders to affected customers, the Central Bank said.

Close to nine out of 10 accounts identified and verified to date have received redress and compensation offers, with the remaining ones expected to receive theirs by end-June, the regulator said.

Most of the redress and compensation payments made to end-March were under €10,000.

Some 29pc were in the €10,000 to €50,000 range, with a minority between €50,000 and €100,000. Approximately 450 people received redress and compensation of more than €100,000, including 11 customer accounts which received redress and compensation in excess of €500,000 due to loss of ownership of properties.

And the Central Bank said it was now taking enforcement proceedings against EBS, in addition to AIB, Ulster Bank, Bank of Ireland, KBC and Permanent TSB.

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