Thursday 19 July 2018

PTSB issues apology over tracker mortgage issues

A Permanent TSB branch on St. Stephens Green.
A Permanent TSB branch on St. Stephens Green.
Michael Cogley

Michael Cogley

PTSB has issued an apology on behalf of the board for the management of tracker mortgages for over 1,300 of its customers.

The bank, which is 75pc owned by the State, implemented a Mortgage Redress Programme to deal with "the consequences of serious failures" over issues associated with the variable rate mortgages.

Between 2006 and 2011, PTSB falied to let certain customers know what the consequences would be if they broke early from a fixed- rate or discounted tracker mortgage.

Some customers lost their lower tracker rates as a result.

Group chairman Alan Cook apologised on behalf of the board.

"I want to make a very full and frank apology on behalf of the board and he management of the group for this failures, and for the very serious, detrimental impact which they had on customers," Mr Cook said.

Mr Cook took tough questioning from shareholders who said they felt "cheated".

Before questioning, Mr Cook highlighted the progress the bank has made over the year.

Amongst the highlights was the approval of the bank's restructuring plan by the EU Commission.

Outside of that the chairman mentioned the strengthening of the balance sheet as well as a return to underlying profitability for the first time since the financial crash.

Shareholders voted in favour of reappointing Alan Cook, Emer Daly, Jeremy Masding, Julie O'Neil, Richard Pike, Ken Slattery as directors of the company

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