Oireachtas Joint and Select Committees

Tuesday, 23 January 2018

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Tracker Mortgages: Allied Irish Banks

4:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I refer to Mr. Byrne's explanation for how the problem arose. He said that in late 2008 the bank withdrew the tracker product and "the unforeseen and unintended consequence of this decision was that certain customers, who held a tracker product at some point previously but had already moved off the tracker product prior to this decision, were not able to revert to the tracker product". While that was unintended and unforeseen, they had a contractual entitlement to revert to a tracker, the terms of which were defined in their contract. How could the bank have thought at that time that because it had withdrawn a tracker product that those customers, whose contracts stated they had the right to return to a tracker product, would not be so entitled? How could that be "unforeseen and unintended"?

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