Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

This topic was considered in a Topical Issue debate last Wednesday, taken by my colleague, the Minister of State, Deputy Deenihan. The Central Bank has taken direct and very public action on the failures by Permanent TSB and Springboard Mortgages associated with tracker mortgage options and rates. Arising from the Central Bank's enforcement investigation, Permanent TSB has agreed to implement a redress and compensation programme to address the detriment suffered by 1,372 customer accounts. The consequences of these failures are serious and include mortgage overpayments, mortgage arrears, legal proceedings and, in certain cases, loss of ownership of properties, including some homes. 

I understand from the Central Bank that enforcement investigations into these issues at Permanent TSB and Springboard are ongoing. For that reason, it is not in a position to provide any additional information in respect of these enforcement investigations at this time.

I also understand the Central Bank is examining several lender-specific practices, particularly with regard to transparency of disclosure for borrowers. The determination of the most effective and appropriate further supervisory engagement will be informed by the outcome of this current supervisory work, as well as any other market intelligence, including its engagement with the Financial Services Ombudsman. If the Deputy is aware of other banks that have behaved in similar ways, leading to failures similar to that of Permanent TSB, he should bring them to the attention of the Central Bank. Although it does not investigate individual consumer complaints, it does welcome information from consumers of financial products. Individual customers can complain to the Financial Services Ombudsman if they are unable to resolve a complaint satisfactorily with their financial services provider.

The Central Bank is an independent institution and I do not have a role in directing its enforcement or investigative activities, nor does it report to me on specific investigations it undertakes. That said, the Government expects the Central Bank to use the powers available to it and to take whatever steps are necessary to ensure all customers are protected, whether this involves formal investigations or other means.

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