Results 12,781-12,800 of 27,945 for speaker:Michael McGrath

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: To rewind a little to get clarity on that number, 3,200 customer accounts were affected. Does this include the extra few hundred who may have been on the wrong rate for a short period of time?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: Right.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: They were on trackers and on the wrong rate.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: How many of them are there?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: Let us park these several hundred customers. Of the 3,200 people who do fall under the tracker examination, how many of them are now back on the correct rate?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: So close to all of them, and all of them will be shortly. Payment of redress and compensation has been made to 2,900 customer accounts, so this is 2,900 of the 3,200.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: To clarify, redress and compensation involves paying people back all of the overcharging. They were on the wrong rate and all of this was paid back, which is the redress and this has been done.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: Is the compensation 15% of what people were overcharged? I read this at the weekend. Is this correct?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: Is it ballpark in the region of 15%?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: What is the range, from the minimum to the maximum?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: Do the witnesses mean that they are close to getting to the bottom of it and close to 100%?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: What has the bank provided as the overall cost to it?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: Some €185 million?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: Has Allied Irish Banks carried out its own internal investigation as to how it happened?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: As the CEO of the bank, has Mr. Byrne done his own investigation into how so many of the bank's customers were wrongly denied their contractual rights and did not end up being put back on a tracker rate?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: Was there a report on Mr. Byrne's desk about how this happened?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: On a related point, the customers who are in the cohort of this 3.67% prevailing rate issue strongly argue that they should have been put on what would be regarded as an actual tracker rate. I have looked at the terms of the mortgage contract, particularly term 3.2, setting out customers' entitlement to revert to a further fixed rate at the end of their period on the fixed rate, conversion...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: People who started on a tracker mortgage, went to fixed and-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: Surely, in this case, the prevailing rate is the prevailing margin. That is the only issue here. The bank cannot influence the ECB rate. The prevailing rate is a certain margin above the ECB rate. Surely the prevailing rate would be the ECB rate plus the prevailing margin that applies to tracker rates.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Allied Irish Banks (26 Sep 2017)

Michael McGrath: The clause in the contract says that at the end of the fixed rate period, the customer may choose between three options. One is conversion to a tracker interest rate mortgage loan at the bank's then prevailing rates appropriate to the mortgage loan.