Thursday 26 April 2018

Ulster Bank puts aside €206m to cover cost of tracker redress

Ulster Bank prompted surprise when it set aside just €5m in 2015 for the cost of the redress scheme Stock photo: PA
Ulster Bank prompted surprise when it set aside just €5m in 2015 for the cost of the redress scheme Stock photo: PA
Charlie Weston

Charlie Weston

Ulster Bank has set aside millions of euro to cover the cost of putting customers back on low-cost trackers and refunding them overcharged interest.

The bank made a provision of €206m last year to cover the costs of a mortgage redress scheme for customers who were denied a tracker, according to the bank's latest statutory accounts.

The British-owned bank said in the past it had written to 1,885 residential customers who lost good-value trackers, but should not have had them taken off them.

These customers have since been restored to a tracker rate, but have yet to get a refund of overcharged interest, and compensation.

The bank has stated that it expects to find more tracker-loss cases.

Ulster Bank prompted surprise when it set aside just €5m in 2015 for the cost of the redress scheme.

The Central Bank has ordered an industry-wide review of tracker mortgages. Some 15 lenders are involved, with expectations that more than 15,000 mortgage holders will get trackers back.

The liquidators of the Irish Bank Resolution Corporation also said they had identified 50 customers who should have a residential tracker mortgage, but were denied one.

Irish Independent

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