John McGuinness (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

I wish to follow up on the point being made by Senator Horkan. Professor Lane speaks about engagement between the customer and the bank. I have come across cases where the customers are reluctant to get into the engagement process because they know what the final result might be. There are also many customers who attempt, at an early stage, to flag their difficulties to the bank. I have seen cases where the banks have simply not responded or do not respond promptly. As a result, the customer continues to slip into arrears. There are many cases where the banks are behaving like this. There is a need to reinforce the position from the Central Bank to ensure the banks have sufficient staff in place to deal with the queries as they arise or we will just see more and more of this.

I want to go back to the compensation figures from earlier. Some 3,916 customers were overcharged and they probably do not come under the regulations the Central Bank has in place now. For those who do not come under that regulation would Professor Lane issue an opinion to the banks that the spirit of the legislation should be applied in those cases? I also want to know about the compensation, particularly for the 100 families who lost their homes. They did not just lose their homes; they were probably tormented and targeted for years previously by banks that seemed to act without any control whatsoever in what they could say and do to the unfortunates who fell into the category of having to be chased by the banks.

The compensation should follow the Revenue model. For example, if a person does not pay their taxes he or she sufferers penalties and interest. The Central Bank and its relationship with the banks is going to be measured by the type of compensation package that Professor Lane will put in place for those who have been overcharged, caught in the tracker issue or who have lost their homes. I do not see why the Central Bank could not take a page out of Revenue's book and act on the banks in this situation in the same way that Revenue would act, but insisting on the money being paid and on a favourable and generous compensation for the manner in which these people have suffered at the hands of the banks. I believe the Central Bank should do this. From the Professor's correspondence on the Ulster Bank globalisation fund mechanism for dealing with issues, I understand that domestic EU and EU legislation does not allow the Central Bank to expand on what kind of compensation it might put in place for these customers.

Can Professor Lane tell us how much he knows about the Ulster Bank issue because at the end he is asking us if we have information? There is extensive information out there. Reams have been printed about the issues that have faced these customers, the hassle they were put through by the banks and the fact that performing loans were passed on to vulture funds and so on. There was no real effort made to work out the circumstances of those loans and clients.