Dáil Éireann Debate, Wednesday - 4 October 2017
88. Deputy Pearse Doherty asked the Minister for Finance the number of homes lost or that are being examined as possible losses as a result of overcharging on tracker mortgages, by lender, to date in 2017; and if he will make a statement on the matter. [42006/17]
View answerThe Central Bank has advised that, while rate rectification is almost complete for the majority of impacted customers identified to date, the redress and compensation phase of the Tracker Mortgage Examination is ongoing. Lenders are continuing to determine the exact circumstances and the impact of their failures for each individual account. Therefore, the Central Bank has indicated that lenders do not yet have complete figures for loss of ownership, which are impacted by tracker mortgage related issues.
However, my Department has sought information from the banks in which the State has a shareholding interest and has received the following responses:
AIB has indicated that it has identified circa 14 cases where the bank has deemed that the failure in relation to tracker mortgages may have caused a customer to lose their home. However, as the review is not yet complete, this number may change but the bank has indicated that it does not currently expect it to change substantially.
PTSB has also advised that, through the Mortgage Redress Programme which was completed in 2015, the bank identified 22 cases where it was determined that the loss of ownership may not have occurred had it not been for the bank's failure. However, the bank's work on this matter, including the Central Bank ordered industry wide review of tracker mortgages, is continuing and when it very recently appeared before the Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach, the bank noted that some further loss of ownership cases as a result of the Tracker Mortgage Examination will arise. However, the bank advised that it expects this additional number to be low.
Bank of Ireland advised that it is currently conducting its examination of tracker mortgage related issues which covers, among other things, transparency of communications with and contractual rights of tracker mortgage customers. This process is ongoing and the bank indicated that it will provide further updates as the examination progresses.
