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37,100 Irish people affected by tracker mortgage scandal so far

Written by Robert McHugh, on 25th Apr 2018. Posted in Ireland

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The Central Bank has published its April update on the Tracker Mortgage Examination, showing that, at end-March, banks and smaller lenders had paid out €459 million to customers affected by their failings. This is an increase of €162 million since the December update on the Examination.

An additional 3,400 affected customers have been included by lenders for redress and compensation, largely arising from the verification process by lenders. This brings the total number of affected accounts at end-March to 37,100.

Eighty Eight percent of all accounts identified and verified to date as part of the Examination have received offers of redress and compensation, with the remaining 12% expected to receive their offers by end-June.

In terms of the numbers of affected customers in each category, approximately 63% of redress and compensation payments made to end-March were under €10,000. Some 29% were in the €10,000 to €50,000 range, while c.6% were between €50,000 and €100,000.

Approximately 450 people received redress and compensation of more than €100,000, including 11 customer accounts which received redress and compensation in excess of €500,000 due to loss of ownership of properties.

In terms of the total paid in each category, 48% of all redress and compensation paid to date has been in respect of customer accounts in the €10,000 to €50,000 category, and another 24% has been in respect of the €50,000 to €100,000 category. 

Speaking this week, Director General of Financial Conduct at Central Bank, Derville Rowland said, "We recognise the devastating effects that lenders’ failures have had on people. We’re using our powers to force the banks into remedying the scandal they caused. The payment of redress and compensation to those affected is now very significantly advanced, and proceeding in line with the timelines set out by the Central Bank. As the Central Bank has previously set out, consumers who receive a payment from their bank can cash their cheque safe in the knowledge that they can still appeal the amount they have been awarded. The amount they have been awarded cannot be reduced as a result of an appeal: What they have, they hold."

She added, "The Central Bank will continue to closely monitor the work of lenders as they progress through to the conclusion of making payments to those they have failed. We will continue to ensure that lenders deliver on their commitments to make right their failings."

Source: www.businessworld.ie

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