14 homes lost over Bank of Ireland role in tracker scandal

Some 14 customers have lost their homes because of Bank of Ireland’s role in the tracker mortgage scandal, its chief executive has revealed.

14 homes lost over Bank of Ireland role in tracker scandal

By Pádraig Hoare and Eamon Quinn

Some 14 customers have lost their homes because of Bank of Ireland’s role in the tracker mortgage scandal, its chief executive has revealed.

Francesca McDonagh, appointed four months ago, told TDs and Senators at the Oireachtas finance committee that compensation and redress for customers could “never fully reverse the negative effect the tracker issue has had” on them.

Some €68m has been paid by Bank of Ireland to more than 5,000 mortgage holders affected by the tracker scandal.

The number of homes lost has now increased to 14 from the previously revealed four, said Ms McDonagh. Of the 14, eight were owner occupied and the others buy-to-let.

She said of the total 9,400 affected mortgage holders, approximately 6,000 were denied a tracker rate and 3,400 were on a tracker but on an incorrect rate.

The total redress and compensation offered to customers stands at €108m, while one tenth of affected customers have still not received an offer.

As of January 24, the number of customers receiving redress and compensation has increased to more than 5,000, and more than €68m has actually been paid, said Ms McDonagh.

Before the latest Oireachtas hearing, international ratings firm DBRS said that after the Central Bank stepped up its “scrutiny”, late last year, in its two-and-a-half-year probe into the mis-selling of tracker mortgages, that the bill for the banks could top €1bn.

“We estimate that the direct financial cost to banks could rise to, or, even exceed, the €1bn mark if the final number of affected customers were to rise substantially above the c33,700 currently identified, and if the average redress and compensation payments were to remain at elevated levels,” it said.

DBRS estimated that a disproportionate financial burden falls on smaller lenders such as KBC and Permanent TSB, rather than on AIB, Bank of Ireland, or Ulster.

In terms of the number of customers affected at each lender, it said the average compensation works out at €19,947 for Bank of Ireland; €20,208 for AIB; €73,232 for PTSB; €40,350 for KBC; and €60,286 for Ulster.

more courts articles

Man (25) in court charged with murdering his father and attempted murder of mother Man (25) in court charged with murdering his father and attempted murder of mother
Man appears in court charged with false imprisonment of woman in van Man appears in court charged with false imprisonment of woman in van
Man in court over alleged false imprisonment of woman Man in court over alleged false imprisonment of woman

More in this section

FILE PHOTO The Competition and Consumer Protection Commission has cleared the purchase of Goodbody Stockbrokers by AIB END Goodbody Stockbrokers fined over €1.2m by Central Bank over rules breaches
Nottingham City Centre Stock Irish staff at the Body Shop wait for wages as retailer shuts stores in the Republic
Ryanair comments on Norwegian Ryanair boss O'Leary's spat with Transport Minister over Dublin Airport escalates
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited