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Thousands of mortgage holders in arrears overcharged

Over 3,000 mortgage holders who were in arrears were overcharged by their lenders, a Central Bank investigation has found.

They 3,100 accounts in question were over-charged by nearly €70,000 but refunds have since been given.

The bank’s investigation was an examination of lenders’ compliance with the code of conduct on arrears.

It also found that out of six mortgage lenders, four were not in full compliance for a number of reasons including system errors and inadequate monitoring.

Two were in full compliance of the rules, the bank said yesterday, while all six had made attempts to be in compliance.

Central Bank director of consumer protection, Bernard Sheridan, said: “While the refunded amounts may be small, they are significant to those mortgage customers who are in arrears situations and for whom every cent counts.”