99 people lost their homes over tracker misery
The tracker mortgage scandal has shattered lives and inflicted “huge human suffering and cost”, according to the Minister for Finance.
Paschal Donohoe was responding to the publication of the Central Bank’s final report into its tracker mortgage examination, which revealed 99 people had lost their homes as a result of the banks’ failings. A further 216 buy-to-let properties were also repossessed or handed over.
Mr Donohoe described the findings as a searing insight into the misery caused to mortgage holders by the banks.
The final report into the scandal identified 40,100 affected customers who were overcharged by banks. It said banks have paid a total of €683m in redress, compensation, and costs.
Earlier this year, the Central Bank had said 39,000 people were affected and that the banks had paid €647m in compensation. The average redress paid in respect of the loss of a home is €194,000, but more than 3,000 customers have appealed compensation offers to date.
The five main lenders — AIB, Bank of Ireland, KBC Bank Ireland, Permanent TSB, and Ulster Bank — accounted for 98% of affected accounts and, according to the Central Bank, offers of redress and compensation have been made in respect of 98% of affected accounts.
Of the remaining 2%, many customers are believed to have left the country but banks have been told to set aside money for compensation should these customers be located.
The five main lenders have put aside €1.1bn to cover the total cost of compensation, redress, fines and administration. In May, Permanent TSB was fined €21m by the Central Bank for “serious failings” and enforcement investigations are continuing against all the other main lenders.
Mr Donohoe said people had been let down and had trust corroded by “appalling” behaviour.
He said those who have lost homes “need the most sympathetic treatment” and that compensation and redress remains a matter for the Central Bank.
Financial expert Padraic Kissane said that, for many of those affected, the report represents closure. However, he said no amount of compensation could ever undo the damage that was done by the scandal.
“You can’t put a price on the damage done to families,” he said.
The stress and the impact is huge. The levels of cancer and IVF, separation and anguish, that I see in the office is off the charts. It was catastrophic to people.
Thousands of other affected customers have been excluded from the report, according to Fianna Fáil TD Michael McGrath.
He said an additional 6,000 AIB customers have been left in the dark and may have to pursue the matter with the Ombudsman or in the courts.
