State-owned lender AIB has set aside €190m to compensate customers who were wrongly removed from tracker mortgages, according to The Irish Examiner.
The bank earmarked the payment in its most recent annual results released in March of last year.
AIB has reportedly also admitted it wrongly withdrew tracker mortgages from over 3,000 customers, confirmed that 14 people lost their homes as a result of the error.
The Oireachtas Finance Committee heard in recent weeks that 15 banks had been guilty of wrongly changing customer mortgage plans, with 20,000 loans across the country thought to be affected.
AIB has set aside €105m for the refunding of interest and compensation due to customers, in addition to an €85m for the “accounting impact” of the refunds.
Of the 3,003 accounts affected, AIB ceo Bernard Byrne confirmed that 2,230 had been sent letters of redress by the bank.
Last month, the Oireachtas Committee chair John McGuinness accused Central Bank governor Phillip Lane of being afraid to go after the banks over the scandal. Rejecting Mr McGuinness’ claims, Mr Lane said the duty of the regulator was to serve the public interest at all times.
The bank earmarked the payment in its latest annual results released in March of last year.
At least 30 mortgage customers from banks including AIB and Ulster Bank that lost their homes as a result of being denied lower tracker rates will be paid compensation "to the measure of the hurt" caused to them, the Central Bank has said.
One can only imagine what it is like to lose your home. It must be the nearest thing to a death in a family. To be uprooted from a place that is familiar and yours, that has been shaped to your liking and that holds deep personal memories, must be a nightmare.