Wednesday 22 November 2017

Bank of Ireland reveals extra 6,000 customers will be compensated over tracker mortgage error

Stock photo
Stock photo
Charlie Weston

Charlie Weston

BANK of Ireland has owned up to thousands of extra cases where customers were denied a good-value tracker mortgage by it.

The bank said it has discovered an additional 6,000 cases where customers were due the low-rate mortgage, but had been told they were not entitled to it.

The new figure is understood to include 2,000 bank staff that Bank of Ireland was resisting including in its tracker remediation scheme, despite pressure from the Central Bank.

The new 6,000 cases are in addition to 4,300 cases already admitted to by the bank.

This takes the total to more than 10,000, the largest number of the 15 lenders examining their mortgage books for mortgage overcharging.

New chief executive Francesca McDonagh has apologised for the failure to recognise that customers were due the good value rates.

BoI boss Francesca McDonagh.
BoI boss Francesca McDonagh.

The bank has been forced to put aside between €150m and €175m to cover the cost of returning the 6,000 overcharged mortgage holders to tracker rates, refunding overpaid interest and compensating them for the loses.

Ms McDonagh said: “Since taking up the role of CEO at Bank of Ireland in October, making progress on the tracker issue has been a top priority. We have since made substantial progress in relation to the issue.

“The bank is also confirming today that c.6,000 additional customers will be part of the compensation scheme. This now gives us a clear picture of the number of impacted customers.

"The compensation process is commencing, and our priority is to ensure that all impacted customers are compensated as quickly as possible.”

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