Tag Archives: Tracker Mortgage

This morning.

The Central Bank has fined KBC Bank Ireland more than €18.3m and reprimanded it over its role in the tracker mortgage controversy following an investigation into its conduct.

Via RTÉ

The regulator said the Belgian owned bank had been responsible for “serious failings” that affected the holders of 3,741 customer accounts between June 2008 and October 2019.

The Central Bank said KBC’s actions had a devastating impact on the customers, with significant overcharging, and a resulting loss of 66 properties – 11 of which were family homes.

The investigation found that 39 of these losses could have been prevented if KBC had implemented a regulatory requirement to cease any actions that would have resulted in additional harm to customers during the review.

KBC Bank Ireland fined €18.3m for tracker mortgage failures (RTÉ)

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Meanwhile…

A still from the tracker mortgage TV ad from The Financial Regulator in 2007

Via The Irish Examiner:

…Already, 103 complaints relating to tracker mortgages are being assessed as banks believe that borrowers left it too late to lodge their claim. However, Ger Deering [Financial Services Ombudsman] said up to 500 complaints are likely to require further assessment.

Mr Deering has expressed concern that banks are using the time limit clause to potentially exclude some of those affected.

He said he is currently dealing with 1,141 complaints related to tracker mortgages. Of these, 103 are being assessed with regard to whether or not they fall outside the statutory time limit, but he expects this number to increase.

Tracker Mortgage Scandal: Hundreds may find their complaints judged out of date (Kevin O’Neill, irish Examiner)

Um.

This afternoon.

Latest: Minister says banks ‘unable to feel pain or conscience’ amid track mortgage scandal (Irish Examiner)

Meanwhile…

Assistant Secretary Department of Social Protection Kathleen Stack with Leo Varadkar, then Fine Gael Minister for Social Protectio, in April, 2017

More than 3,200 persons in receipt of welfare benefits have been overpaid by a minimum of €30,000 and still owe €179m back to the State, it emerged yesterday.

The Dáil’s Public Accounts Committee heard that the overall level of outstanding debt on pension, welfare and carers payments due to overpayments now stands at €501m

Good times

3,200 welfare claimants overpaid by at least €30k (irish Examiner)

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The rising tracker mortgage scandal

They found another 13,600 customers affected by the tracker mortgage scandal.

Fancy that.

The five main banks caught up in the scandal – KBC Bank Ireland, AIB, Bank of Ireland, Permanent TSB and Ulster Bank – have issued individual statements on impacted tracker accounts this afternoon.

Between them, these lenders have set aside almost €900m to cover redress, compensation, and additional costs related to the tracker investigation.

…Commenting on its investigation, Central Bank Governor Philip Lane said:

“Many lenders publicly state that they put customers first. The evidence of the examination that we have seen suggests otherwise.”

Good times.

Number of affected tracker mortgage accounts rises above 33,000 (RTÉ)

Yesterday.

Fiona Reddan, in The Irish Times, reported that a Permanent TSB customer Maria Page had settled a case with the lender in what is believed have been one of the first successful tracker mortgage cases taken since the scandal broke.

O’Dwyer Solicitors, based in Mayo, represented Ms Page.

Further to this…

O’Dwyer Solicitors write:

For now the single biggest issue is whether or not there has been surcharging and what the borrower can do about it if they believe that they have been affected.

We, at O’Dwyer Solicitors, were involved in the first cases of this type in the Country where Permanent tsb accepted the claims that were being made by our clients and settled the cases for a sum which was substantially more than was on offer initially.

If offers are now made from either Permanent tsb, Bank of Ireland, AIB or Ulster Bank, or any other lender, there is no obligation on any borrower who has been adversely affected to take up this offer and they should immediately seek independent legal advice.

Not every person who has been adversely affected by the tracker crisis will have the same level of compensation paid to them. In the most extreme circumstances where the repayment schedule was too much to bear houses have been lost and families have been evicted. This is the most extreme circumstances.

Among our own clientele we know of rural people affected who took up second jobs or sold farm animals in order to make repayments. We know of people who obtained personal loans in order to make up the shortfall in the repayments made to banks. There are a lot of horror stories out there and this is only the beginning of what could potentially be a much larger problem for the banks.

Given the attitude of the banks towards borrowers, and towards the government in trying to tackle this crisis and the Central Bank in trying to regulate the behaviour of banks, there is no guarantee that the banks will contact each and every person who has been adversely affected by their behaviour. There is no guarantee that the amount of compensation proposed will in any way be equal to the amount which is due.

It is therefore incumbent upon each mortgage holder to contact their bank in writing and request their files for review so that each borrower can individually establish whether they have been affected or not.

At O’Dwyer Solicitors we have the expertise to allow us to be able to know what to look for and to represent those people who have been adversely affected and seek recompense against the banks.

For further details contact tracker@odwyersolicitors.ie

Tracker mortgage crisis (O’Dwyer Solicitors)

PTSB settles tracker mortgage case with customer out of court (The Irish Times)

Previously: Bankers: Now Openly Laughing At The Public (January 2012)

 

Oooh.

Right in the bonus.

Earlier: The Central Bank Tweets

Finance Minister not satisfied with progress on tracker issue (RTÉ)

This morning.

Leinster House, Dublin 2

Central Bank Governor Philip Lane flanked by Derville Rowland, Director General, Financial Conduct (left) and Sharon Donnery, Deputy Governor ahead of reporting to Finance Committee about the tracker mortgage controversy.

The Governor of the Central Bank has told the Oireachtas Finance Committee that it is liaising with An Garda Síochána and other State agencies in relation to the tracker mortgage scandal.

Philip Lane said the Central Bank is pushing the limits of its powers to ensure customers affected by the controversy are remedied appropriately.

Update:

Sinn Féin’s Pearse Doherty said he was “absolutely shocked” that the Central Bank would not use its powers to compel the banks to issue redress to customers it believes are affected by the scheme.

“I’m not hearing that you are willing to use those powers. That is letting down the customers and a dereliction of your duty” he said.

He said the Central Bank was saying it would ask for the names of the customers, and would write to them inviting them to make a complaint to the Financial Services Ombusman.

He described the Central Bank as “the dog that won’t bark”.

Central Bank working with gardaí over tracker scandal (RTÉ)

This afternoon.

During Leaders’ Questions.

Further to the publication yesterday by the Central Bank of its latest Update on Examination of Tracker Mortgages…

Taoiseach Leo Varadkar (above) spoke about the tracker mortgage scandal.

He said:

“The Central Bank yesterday published its latest update on its industry-wide examination of tracker mortgages which was commenced in 2015. Approximately 13,000 impacted accounts have been identified by lenders as of the end of September, that’s an increase of 3,100 since the March report.

“The Central Bank is currently pursuing enforcement investigations in relation to tracker mortgage-related issues arising in Permanent TSB and Ulster Bank Ireland and two further enforcement investigations into other lenders are now in train and it’s anticipated that more enforcement investigations will follow.

“The Central Bank is not making the names of the two lenders known while the process is ongoing. And as a result of the Central Bank’s challenges, the two lenders are reconsidering certain outcomes of their reviews and our due to revert to the Central Bank by the end of October.

“If the Central Bank is not satisfied with the response from those two lenders, by the end of October, I think at that point, the Central Bank will name those two lenders.”

Watch Dail proceedings live here

Thousands may be unaware they are victims of tracker controversy (Conor Pope, The Irish Times)

The number of mortgage accounts impacted by the tracker scandal has risen by 3,100 to 13,000 since March, according to the Central Bank.

In an update on its examination of the issue, the regulator said 23 mortgage holders have so far been identified who lost their homes as a result of being improperly moved from their low-rate tracker product to a higher rate loan.

A further 79 buy-to-let customers affected have also had properties repossessed.

The Central Bank said it expects both of these figures to rise.

By the end of September, banks had rectified the interest rates applied to around 7,700 (98%) impacted mortgage accounts that have so far been identified – a rise of about 1,400 since March.

13,000 mortgage accounts affected by tracker scandal so far – Central Bank (RTÉ)

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