Mr. Jim O'Keeffe:

The identification of customers who lost their homes is done on the basis of looking at what rate they would have been on had they been on the tracker rate. In addition, we look at their affordability to see if customers would have been able to afford that rate. The homes that were lost were all sales as opposed to repossessions, so they would have gone through a forbearance process and identified the sale of the property. In identifying that grouping, we identified the tracker rate, calculated the affordability of the customer and, to allow flexibility, we built in 15% extra affordability because of the nature of the issue we were facing. We looked at what was the most favourable forbearance option that could have been provided to the customer so that we minimised the repayment amount as much as we could. If we put them through the forbearance structure, what we would then get to would be the minimum repayment amount versus the maximum affordability that we could find related to it. On that basis, we would compensate and we take a series of actions relating to the compensation. There is the refund of any overpayments on the account itself and the account was rebuilt right back to the date on which the error occurred. Transaction statements are rebuilt line by line so that we put it back exactly as it was.