Lenders pushed to include 13,600 more tracker cases; redress and compensation reaches €297 million

The Central Bank of Ireland has published the latest update on the progress of the Tracker Mortgage Examination, which confirms:

• An additional 13,600 customers have been accepted by lenders following challenge from the Central Bank, bringing the total number of affected customers to 33,700.
•  This includes 26,600 in the Tracker Mortgage Examination and 7,100 cases resolved outside of the Examination.
• €297 million in redress and compensation has been paid to mid-December, with more to follow.

Governor Philip R. Lane said: “Many lenders publicly state that they put customers first. The evidence of the Examination that we have seen suggests otherwise. The Central Bank recognises the devastating effects that lenders’ failures have had on families and individuals. That is why we’re using all our powers to force the banks into line and ensure all affected customers are included for redress and compensation.”

Director General, Financial Conduct, Derville Rowland, said: “This is a critically important outcome for affected customers. Many of the banks put up barriers by relying on narrow interpretations of contracts. We relentlessly pursued them in order to force them into doing the right thing by their customers. While the Central Bank’s view is that the vast majority of customers have now been identified and included for redress and compensation, we will continue to review, challenge and verify the work undertaken by the lenders and complete our intrusive on-site inspection programme.”

The majority of customers identified at the end of September have now been paid redress and compensation by their lender. The number of customers receiving redress and compensation will increase over the coming weeks and months as the additional customers recently included receive their redress and compensation offers. In addition, the Examination has been designed to ensure affected customers have further options if they believe any aspect of the redress and compensation offered by their lender is insufficient.

Governor Lane said: ‘It is important to note that customers can accept the redress and compensation offered and still make an appeal – they can “cash the cheque” safe in the knowledge that what they have, they hold. Redress and compensation offers cannot be reduced if a customer makes an appeal.’

The Central Bank’s enforcement actions continue to progress parallel to the Examination. Three enforcement investigations are currently in train, with investigations into all the main banks expected.

ENDS