Dáil Éireann Debate, Thursday - 21 June 2018
73. Deputy Martin Heydon asked the Minister for Finance the status of the Central Bank review into tracker mortgages; and if all institutions are being monitored in terms of their compliance with the timelines promised to the consumers. [27261/18]
Amharc ar fhreagraThe Central Bank is independent in the performance of its duties in the supervision of regulated financial service providers and it is working to ensure that the tracker mortgage examination is completed as soon as possible. The Bank provided a comprehensive update on the Tracker Mortgage Examination in April 2018, which is available at: https://www.centralbank.ie/docs/default-source/consumer-hub-library/tracker-issues/update-on-tracker-mortgage-examination---april-2018.pdf?sfvrsn=4.
The April update report indicated that:
- the total number of customers identified through the Examination to end-March 2018 is c. 30,000 (of which 1,500 remain to be verified by lenders), which therefore brings the total number of impacted tracker customers to 37,100 (inclusive of the 7,100 impacted cases identified before the commencement of the industry wide examination);
- 88% of identified and verified customer accounts from the Examination have received offers of redress and compensation. Offers of redress and compensation are expected to be made in respect of the remaining 12% of identified and verified customer accounts by end-June 2018;
- payments may extend beyond that date for any newly identified and verified customers from the time of the April update. However, as redress and compensation schemes are underway across all lenders, the Central Bank expects that any such additional accounts will be swiftly remediated;
- total redress and compensation of €459 million has been paid to end-March 2018, an increase of €162 million since the December 2017 update. The €459 million figure comprises €412 million paid to end-March through the Examination and €47 million paid outside of the Examination.
As part of the Tracker Mortgage Examination, intensive review and challenge of lenders by the Central Bank remains ongoing. It should be noted that verification work by lenders, and review and challenge by the Central Bank, may lead to some further increase in the number of affected customers before conclusion of the Examination.
The Central Bank has challenged, and will continue to challenge, lenders in relation to various strands of the Examination until it is satisfied that all affected customers are identified and lenders have carried out the Examination in accordance with the Framework set down by the Central Bank. The Central Bank will also continue to monitor payments by lenders to impacted customers.
