Monday 22 October 2018

Taoiseach issues blunt warning to banks to resolve 'scandalous' tracker mortgage scandal

Taoiseach Leo Varadkar. Pic: Mark Condren
Taoiseach Leo Varadkar. Pic: Mark Condren
John Downing

John Downing

Taoiseach Leo Varadkar has warned banks guilty of wrongly depriving customers of tracker mortgages to resolve the bulk of outstanding cases before the end of this year.

Speaking in the Dáil Mr Varadkar described the banks’ behaviour as “scandalous”  and he warned that the Government is “losing patience” with the banks on the issue.

He said the Finance Minister, Paschal Donohoe, is meeting with the heads of the main banks on the issue next week.  The Minister is also meeting with the Central Bank to see if they have all the powers they need to resolve the problems.

“It’s very much in the interest of the banks, their shareholders and staff to fix this problem, and fix it quickly,” the Taoiseach said.

Read More: Banks refusing to refund customers after wrongly stripping them of trackers

Read More: Revealed: More than 100 families and investors lost their homes in tracker mortgage scandal

The Taoiseach was replying to Labour leader, Brendan Howlin, who said the Central Bank had been investigating this issue for two years.

Mr Howlin said the delays were unacceptable as people had suffered financial loss and great human suffering.  He called on the Central Bank to name two banks which had behaved especially badly.

The Dáil debate follows details of an update by the Central Bank on failures by the banks to restore borrowers to tracker mortgages and compensate them.

The update revealed that up to 100 families lost homes because of banks’ failures.

The Taoiseach said the Government expected the bulk of cases to be dealt with and resolved by the end of this year.

Online Editors

Today's news headlines, directly to your inbox every morning.

Also in this section