Written answers

Thursday, 23 June 2016

Department of Finance

Central Bank of Ireland Investigations

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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26. To ask the Minister for Finance the status of the investigation into mistreatment of tracker mortgage customers by Irish financial institutions; the timetable for resolution of the matter; the interim measures that can be implemented to assist customers; and if he will make a statement on the matter. [17531/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I have been informed by the Central Bank that the examination of tracker mortgage related issues covers all lenders which offered tracker mortgages to customers, including both for the family home and investment properties from when the lenders started to offer such mortgages, up to the end of 2015. 

The Central Bank have stated that each lender is required to conduct a comprehensive and robust review of its mortgage book, which achieves a fair outcome for all customers. 

While the Central Bank wants to have the Examination completed as soon as possible, it also recognises that this is a significant undertaking for lenders and it is important that they are given the necessary time to complete it. As such, I understand that it will be some time before the final number of impacted customers is known. The Central Bank expects significant progress to be made by all lenders before the end of 2016 and has affirmed that the examination will remain a priority for as long as it takes to address all issues and deliver the right outcomes for customers. 

The Central Bank has confirmed that during the Examination all lenders are to establish a dedicated unit to deal with any queries, complaints, and/or concerns that customers may have during the course of the Examination. Nonetheless, I have been informed by the Central Bank that if a customer has a tracker related query they should continue to contact their lender through the regular contact channels.

The Central Bank has also informed me that when impacted customers are identified, the Examination framework provides that, in the first instance, lenders must stop charging the incorrect rate of interest on the customer's account to ensure that any further customer detriment is stopped as early as possible and communicate this to the customer. Once a full review of the customer's account is complete, I understand that lenders will issue a letter to the customer explaining the nature of the error, the correct rate to apply to the customer's account and information on the next steps in the Examination, including the redress and compensation process.

As the Deputy will be aware, the Central Bank will be providing public updates on their website throughout the Examination. I understand that the next update is due to be issued at the end of July.

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