Results 11,641-11,660 of 27,945 for speaker:Michael McGrath

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Permanent TSB (6 Feb 2018)

Michael McGrath: I have one tracker one and one quick non-tracker one. On the trackers, of the 1,979 impacted customer accounts, how many relate to persons who are no longer customers of the bank?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Permanent TSB (6 Feb 2018)

Michael McGrath: Sure. The non-tracker question is a related one because the issue is who ultimately is paying for all of this. I, therefore, want to raise the issue of mortgage pricing again with Mr. Masding. I have put it to him before that his bank's mortgage rates are very high. For a long time the bank was not offering a fixed-rate option to existing customers. He committed to the committee that the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Permanent TSB (6 Feb 2018)

Michael McGrath: Okay.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: I welcome Mr. Verbraeken and his colleagues. I will continue with Deputy Pearse Doherty's line of questioning. I am conscious that people who are directly affected are watching. Members will have received correspondence in this regard. Let me tease out the issue a little further. The 650 PDH mortgage accounts that Mr. Verbraeken identified as being affected relate to new applications....

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: That is the relevance of those dates. When was the flyer circulated to the brokers?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Therefore, it was issued to the broker network at the beginning of November 2006 and then revoked through communication with the brokers.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Would the mortgage documentation of the customers, as in the mortgage contract, not have made reference to any entitlement to be put on a tracker?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: The brochure had been circulated, however, and clearly influenced the decision of many customers to go with KBC Bank and to opt for the product in question. The flyer was issued on 7 November 2006 and revoked on 11 February 2008. Of course, the bank did not have control over the communication that existed between the brokers and those individuals who were to become the bank's customers.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Let me give a flavour of the types of issues that arise. Obviously, these relate to the cut-off date or dates either side of that. One customer said they met their broker in February 2008 to discuss the options and the broker produced the KBC Bank flyer, making it clear that the customer could roll on to a tracker on expiry. The customer placed a lot of emphasis on that advice. My...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: April for new customers.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Another customer has said they drew down their mortgage in February 2008, so presumably if they had relied on the flyer they should have been deemed to have been impacted, all other things being equal. That is one case that KBC might need to look at.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: At the other end of the cut-off there are customers who made the application in September 2006 so it was before the existence of this flyer. They challenge that KBC has used the application as the cut off. They make the legitimate point that it is not complete until fully signed and reviewed by all parties, legal advice is sought and when the mortgage is executed. If it was within the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: How much of the business at that time would have come through the broker network?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: More than 90%, close to all of it really, came through the broker network. This flyer was circulating during that period. I can see why the bank has drawn the line it has but it is very unfair on some of those who are directly affected. There are people who relied on the flyer but who may not have fallen within the cut-off dates that KBC has set, especially those who may have applied...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Can customers who are deemed to be not impacted go to the KBC appeals panel?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Okay. If the committee members get the full details of cases can we pass them on?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: We will take an interest in them. I will turn to the other cohort. In October, KBC revised down the 490 customers to the 417 mortgage accounts. This was the very first group that had been identified as not rolling on to a tracker rate after a fixed rate period or were moved off their tracker rate following a change to the terms of their loan or were on the incorrect tracker margin. Were...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Okay, but whatever about the correspondence issued, was their contract clear?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Okay.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: KBC Bank (6 Feb 2018)

Michael McGrath: Turning to the additional 2,557 cases, within that figure we have already discussed the 650. The balance of 1,907 mortgages were accounts that were converted from a tracker rate to another rate product post drawdown, up to July 2008. These have now been identified as impacted cases. This was a big change. Will the witnesses explain those mortgage accounts to me?