Dáil Éireann Debate, Tuesday - 6 October 2015
271. Deputy Pearse Doherty asked the Minister for Finance if, during its investigation into tracker mortgages in the banking sector, the Central Bank of Ireland has identified potential breaches of contracts by other banks, apart from Permanent TSB; and if he will make a statement on the matter. [34503/15]
View answerThe Central Bank has informed me that, in line with their risk-based approach to supervision, their engagement with lenders has been intrusive in relation to lenders' treatment of tracker mortgage borrowers. The Central Bank has identified and pursued a number of lender-specific issues in relation to transparency for consumers, who opted to switch from their tracker rates or who had the right to revert to a tracker rate at the end of a fixed rate period. Their work in this area has resulted in the use of supervisory powers, including the Administrative Sanctions Procedure, redress and compensation schemes for those people who suffered detriment or loss as a result of their lenders' practices.
Notwithstanding the considerable work undertaken to ensure consumers are appropriately protected, the Central Bank has informed me that they remain concerned that there may be other tracker-related issues which could be impacting on consumers across the system. In this regard, they are currently engaging closely with a number of lenders on points of concern relating to their ability to demonstrate that they have acted in the best interests of their tracker mortgage customers, with a number of lenders currently undertaking their own internal reviews. The Central Bank has also been engaging with consumer groups as well as the Financial Services Ombudsman to help inform their future work.
On 2 October, the Central Bank announced that they had decided that a broader examination of tracker-related issues covering, among other things, transparency of communications with and contractual rights of tracker mortgage borrowers, was warranted. The Central Bank has commenced this examination. I also understand that they have written to lenders notifying them of this.
