Oireachtas Joint and Select Committees

Tuesday, 30 January 2018

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

Tracker Mortgages: Bank of Ireland

7:10 pm

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein) | Oireachtas source

My last question is again in regard to individuals who are not deemed impacted by the bank, and I asked the same question of AIB. For those who had an entitlement to a tracker mortgage and who would have fixed for a period, by the time the fixed period had expired, the tracker mortgage was no longer available on the market so they would have been offered a variable rate or to fix again. If they chose to fix again, would they be deemed as impacted? AIB told us they would be deemed as impacted because it had failed to offer them the tracker mortgage, even though it was not in the market, because it had a contractual arrangement. Again, we have plenty of communication on this but a sample case is a customer of Bank of Ireland who took out a tracker mortgage with the bank in 2007. It was clearly stated on the contract that it was the ECB rate plus 1.1%. He fixed for three years and, when the three years was up, he was offered other options and he fixed again. Others in the exact same scenario have spoken about this on www.askaboutmoney.comand all of this is publicly available. When they got the letter of offer, they actually approached Bank of Ireland and said they were entitled to a tracker and then got a letter back from the bank saying it was sorry for the error and it put them back on the tracker. These are probably some of the 20,000 Ms McDonagh talks about. The bank was aware there was an error there but this individual, and many others like him who fixed for a second period, are now not being deemed to be impacted by the bank. How could that be?

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