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Sunday 25 February 2018

Mortgage rip-off: 10,000 get refunds

Average €25,000 payback in biggest overcharging scandal

Central Bank Governor Philip Lane. Photo: Gareth Chaney / Collins
Central Bank Governor Philip Lane. Photo: Gareth Chaney / Collins

Dearbhail McDonald and Charlie Weston

Almost 10,000 mortgage holders will have their tracker mortgages restored and get substantial compensation.

In what is now the biggest overcharging scandal in the history of the State, it emerged up to 15 lenders are being forced to restore the valuable trackers and make pay-outs.

Banks started denying people trackers when interest rates started rising from 2006, as these people opted to fix their mortgage rate, but then could not get back their trackers.

In an exclusive interview with the Irish Independent, Central Bank Governor Philip Lane revealed a probe into the scandal is so extensive the deadline has had to be extended.

Prof Lane said the investigation by banks into their tracker books had thrown up "wide-scale" abuses. Average compensation amounts per customer are thought to be around €25,000. The final bill for the banks and other lenders caught up in the probe could top €1bn. Already, about 8,200 homeowners who were overcharged or had their tracker removed have been identified.

The final total is expected to be more than 10,000.

Irish Independent

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