The Central Bank has advised that it is not in a position to comment on lender specific supervisory information due to confidentiality requirements under Central Bank legislation.
However, in a more general way the Central Bank advises that its Tracker Examination Framework requires all lenders to identify all impacted mortgage customers and to address customer detriment in line with the Central Bank’s "Principles for Redress". These redress principles, along with various supplemental guidance, clearly set out the Central Banks expectations of lenders to provide appropriate redress and compensation to affected customers where tracker mortgage related issues are identified. An important part of the Examination Framework is the establishment of Independent Appeals Panels so that customers have further recourse options if they are dissatisfied with any aspect of the redress and compensation offers made by lenders.
The Central Bank has set out guidance for the governance, process and operation of the Appeals Panels. The guidance (please see relevant links:
Redress principles
link
https://www.centralbank.ie/docs/default-source/consumer-hub-library/tracker-issues/appendix3-tracker-mortgage-examination-redress-principles.pdf?sfvrsn=4.
Appeals guidance link
https://www.centralbank.ie/docs/default-source/consumer-hub-library/tracker-issues/tracker-mortgage-examination-appeals-process-guidelines-dec2016.pdf?sfvrsn=4).
provides, inter alia, that where a lender decides to impose limits on the powers of Appeals Panels:
- that lenders will inform customers of such limits;
- that limits on the powers of Appeals panels must be reasonable and must not seek to undermine the independence of the Appeal Panel to make awards of additional redress and;
- where the Appeals Panel determines an award is greater than the limit specified is warranted given the specific circumstances of the case, the Appeals process must provide for a mechanism where such awards can be made. (e.g. refer to lender for sign-off by the lender's Tracker Steering Committee/Board).
Nevertheless, in respect of the lenders in which I have a shareholding interest the following information has been provided to me by those lenders:
PTSB - "The governing rules for both the Customer Appeals Panel (CAP) and the Independent Review Panel (IRP) include the limits applicable to each panel and the process to apply in awarding amounts in excess of these limits:
- The CAP can direct the Bank to pay an amount of additional compensation to a customer up to €35,000. In the event that the CAP feels that a customer has suffered a serious or severe detriment as a result of the Bank’s failures which justifies an award over €35,000, then the CAP can instead of making an award, refer the appeal to the IRP for a determination as the IRP has a higher awarding limit (detailed below);
- The IRP can direct the Bank to make payment of compensation up to a sum of €50,000 (excluding the compensation amount offered in the Redress and Compensation Offer) for non-loss of ownership customers (i.e. legal customers and those referred by the CAP above);
- For Loss of Ownership customers, the IRP can direct the Bank to pay an amount of additional compensation to a customer up to €250,000. If the IRP determine that a loss of ownership customer is entitled to an award in excess of €250,000 then they issue an IRP Recommendation that the Bank should pay an additional amount exceeding €250,000. The IRP Recommendation of any amount in excess of €250,000 must be approved by the PTSB Board before this excess payment is made to the customer. To date no such cases have arisen."
Bank of Ireland - "The appeals panel commenced its work in January. There is no upper limit on the amount of compensation that may be awarded. There is a Governance structure in place which does involve thresholds within which the Appeals Panels can operate without reference to the Tracker Steering committee. To date, there have been no instances to date where the Panels have recommended compensation in excess of the thresholds."
AIB - "The Independent Appeals Panel established by AIB, can award additional compensation(inclusive of the original Redress and Compensation payment) of up to €300,000 (if the mortgaged property is a home) or up to €150,000 (if the mortgaged property is a buy-to-let investment property). AIB will review any awards in excess of the limit on a case by case basis."
