Minister Donohoe Welcomes Tracker Mortgage Progress

The Minister for Finance and Public Expenditure & Reform, Paschal Donohoe, has welcomed the Central Bank's latest progress report on the Tracker Mortgage Examination.

The progress report is the eighth public update since the Central Bank initiated its industry-wide Tracker Examination in October 2015.

Minister Donohoe said: "I am pleased to note that this update demonstrates the progress lenders have made in providing impacted customers who have been identified with adequate redress and compensation. As at end-March, approximately 37,100 customers have now been identified as having been impacted by the tracker failings of their lenders. This is an increase of 3,400 on last December's figures and includes 7,100 impacted tracker borrowers who were identified prior to the commencement of the industry-wide examination.

"Significant progress has also been made in terms of redress and compensation. A total of €459 million has now been provided for customers identified up to the end-March. This includes €47 million paid in redress and compensation to customers identified outside of the industry-wide examination. Of the customers identified so far, 88% have now received offers of redress and compensation. The Central Bank expects the remaining 12% to have received offers by end-June 2018. It is also encouraging that 98% of those customers that were on the wrong rate have had the situation rectified and their appropriate rate restored."

While The Central Bank now believes that the vast majority of impacted customers have been identified, the Bank will continue to carry out its review and supervisory work, and it is expected that there will be some further increase in the number of impacted customers before the examination is concluded. 

The Central Bank has also commenced enforcement proceedings against all of the main lenders. During the course of its investigations the Bank will consider all possible angles, including potential individual culpability. 

Minister Donohoe concluded: "The progress shown in this update demonstrates that the Central Bank Tracker Examination is succeeding in restoring impacted tracker customers to their correct mortgage interest rate and in providing them with redress and compensation that reflects the level of detriment they have suffered. The Minister also believes that lenders' behaviour has been completely unacceptable and that as the Central Bank has noted in its update, 'the Examination has exposed a clear lack of consumer-centred culture in lenders'.

"I would like to thank the Central Bank for its work on the Examination and fully support it in its remaining endeavour to complete the Examination as quickly as possible. All impacted tracker customers must receive appropriate redress and compensation. I forward to receiving a final report from the Central Bank upon its completion of the Examination."

(MH)