Banking Sector Investigations

Dáil Éireann Debate, Thursday - 21 November 2019

Thursday, 21 November 2019

Questions (60)

Michael McGrath

Question:

60. Deputy Michael McGrath asked the Minister for Finance if the Central Bank has been informed by a building society (details supplied) that an investigation has commenced on the overcharging of customers involving insurance products on their mortgage; if the Central Bank is undertaking its own investigation in relation to this; the number of customers believed to be involved at this stage; the amount overcharged; and if he will make a statement on the matter. [48453/19]

Written answers

Minister for Finance

As the Deputy is aware I have no role in the day to day operations of any bank operating in the market. The bank concerned, AIB, has provided me with the following statement in relation to this matter:

"AIB can confirm that the issue has been notified to the Central Bank of Ireland.

"This issue relates to certain EBS mortgage customers where their insurance premium is collected with the mortgage repayment. In the event that the repayments are not made by the customer, the insurance premiums continue to be paid by EBS, the cover remains in place, which is beneficial to the customer. However, interest may accrue and in some cases this may not have been clear to the customer. EBS is at the early stages of the customer identification process and numbers are not currently available. However, based on the sampling, it is expected that the monetary impact on customers to be low."