€683 million in redress paid to customers in Irish tracker mortgage failings

The Irish Central Bank has published the final report of the Tracker Mortgage Examination, showing that at the end of May 2019, lenders have paid out €683 million in redress and compensation to customers affected by their failings. In all, 40,100 customers have been affected.

The Central Bank says following extensive and robust supervisory challenge and assurance work to ensure lenders identified groups of customers affected by tracker failings, the supervisory phase of the Examination is complete.

The Central Bank completed its first enforcement action in relation to the Examination at end-May, fining bank Permanent TSB €21 million for its failings. and says enforcement investigations against all the other main lenders continue.

Derville Rowland, Director General, Financial Conduct, said “The scale of lenders’ tracker mortgage failings was industry-wide, causing immense distress and damage to affected customers and their families. It required an unprecedented regulatory response in the shape of the Tracker Mortgage Examination, the largest, most complex and significant consumer protection review the Central Bank of Ireland has ever undertaken. Through the Examination, we required lenders to identify those affected and pay appropriate redress and compensation. Additionally, we continue to pursue lenders through our enforcement investigations. The outcome of our first enforcement action – which resulted in the largest fine imposed to date by the Central Bank – reflects the gravity with which we view lenders’ tracker failings.”

“The Examination revealed the unacceptable damage that misconduct can cause to consumers up to and including the loss of their homes and properties in some cases. Our message today – to all the firms we regulate – is very clear: Where firms fail to protect their customers’ best interests, our response will be robust and the consequences will be serious.”

The report can be viewed here.