Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I propose to take Questions Nos. 1 and 2 together.

I have just concluded my meetings with the CEOs of Bank of Ireland, AIB, Permanent TSB, Ulster Bank and KBC to discuss the tracker mortgage examination. I and the Government are not satisfied with the progress lenders have made to date, and believe that impacted customers should by this time have had their tracker mortgages restored and, where appropriate, have received redress and compensation.

The Central Bank published an update on the tracker examination on 17 October. As part of this update, the bank released details of its engagement with lenders thus far and the enforcement actions the Central Bank has so far taken. As Deputies will be aware, the Central Bank has already concluded an enforcement investigation in respect of tracker mortgage-related failures identified at Springboard Mortgages Limited, and in that instance it imposed a monetary penalty of €4.5 million on Springboard.

Currently, the Central Bank is pursuing investigations into tracker mortgage-related issues arising in both Permanent TSB and Ulster Bank Ireland. Two further enforcement investigations into other lenders are in train, and in its recent appearance before the Oireachtas Joint Committee on Finance, Public, Expenditure and Reform, and Taoiseach, the Central Bank indicated that further enforcement investigations can be anticipated.

The Central Bank has statutory reporting obligations to An Garda Síochána and other agencies where it suspects a criminal offence may have been committed by a supervised entity. The Central Bank takes these obligations very seriously and complies with them on an ongoing basis as appropriate. However, decisions in respect of this are solely a matter for the Central Bank, independent criminal investigation bodies and prosecution authorities. Nevertheless, I would strongly support the Central Bank to pursue its tracker mortgage-related investigations and any other necessary actions to the fullest extent and as expeditiously as possible.

However, let me be very clear on this matter. I believe that impacted tracker mortgage borrowers have been treated disgracefully by mortgage lenders, and that many borrowers have incurred considerable losses and in some cases even more significant harm. We should be clear that it was the mortgage lenders that caused this harm to their customers and that the primary responsibility for rectifying the problem rests with them. Therefore, all lenders need to bring the Central Bank examination to a conclusion without any further delay, and to do so to the satisfaction of the Central Bank and more particularly to the satisfaction of their impacted customers. The main point I want to make now is that the time has arrived for banks to finally act in the best interest of their impacted mortgage customers. Of course, they should have done this from the beginning.  The meetings have now concluded with the banks.  I will have more contact with them over the course of the day and when this has concluded I will update the House during Private Members' business tomorrow evening.

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