Taoiseach: Banks' proposals for redress on tracker scandal 'fall short of expectations'

The Taoiseach Leo Varadkar has said the Government has lost all patience with the major banks over the tracker mortgage scandal.

Mr Varadkar made the comment as he told the Dáil the Minister for Finance Paschal Donohoe plans to "admonish" bank CEOs at meetings he has called next week.

Up to 30,000 customers may have been defrauded by banks taking them off trackers.

The Taoiseach said it has taken too long for justice to be done.

He said: "As of the end of September lenders have rectified the interest rates applied to 98% of customers who were affected.

"So in 98% of cases, people are now back on the interest rate that they were supposed to be on.

"However, redress has been much slower and the initial proposals fall short of the Central Bank's expectations."

Financial Services Ombudsman, Ger Deering, says the banks must give their customers compensation and said it is not just about having their tracker restored.

He said: "People are certainly entitled to compensation. If you are only now being put on the correct rate that you should have had four, five or six years ago, certainly reasonable compensation is required in that situation."

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