Pearse Doherty (Donegal, Sinn Fein)
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257. To ask the Minister for Finance if he will provide for each bank the State has a share in, the number of cases being investigated by the bank as part of its review into the sale of tracker mortgages; when each bank will conclude its investigation; and if he will make a statement on the matter. [25272/16]

Pearse Doherty (Donegal, Sinn Fein)
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258. To ask the Minister for Finance with regard to the tracker mortgage investigations being undertaken by banks if he will provide, for each State-backed bank, the number of cases where the bank has admitted it was at fault; the number of these cases where the bank has made a redress arrangement with the mortgage owner; the number of legal cases being taken overall per bank; the number within those who have availed of a redress scheme where legal action against the bank has begun or concluded; and if he will make a statement on the matter. [25273/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 257 and 258 together.

As the deputy is aware, the Central Bank of Ireland announced in October 2015 that it would conduct a detailed review of Tracker Mortgage portfolios with all the banks under its supervision. The Central Bank sought to conduct a broad examination of tracker mortgage-related issues covering, among other things, transparency of communications with and contractual rights of tracker mortgage borrowers.

This review is now underway, and the Central Bank is working with the banks to conduct a comprehensive examination of customer mortgage accounts with regard to tracker rates, including any instances where banks may have failed to deliver on their obligations to customers. Such instances may include cases where the bank was not sufficiently clear with customers on their terms and conditions, or where they have failed to honour contractual commitments.

The Central Bank has laid out a detailed and rigorous process for each institution to follow. The identification of affected customers, implementation of any appropriate rectification actions, as well as the calculation of any appropriate interest redress or compensation, are all processes currently being worked through by the banks. The review also involves oversight of each bank's work by an independent third party, and the establishment of an independent appeals process. Further, the Central Bank continues to review and monitor each institution's progress at every stage. It is possible that different banks will progress through the review process at different speeds.

I expect that the Central Bank, and each of the institutions involved, will provide information periodically on steps taken and progress made. The tracker mortgage review is an ongoing process involving the banks, their regulator and any affected customers; I have no direct role in its implementation. It is therefore not possible, nor appropriate, for me to speculate at this time on the number of customers that may be affected.

For completeness, I have requested a brief update from each of the banks in which the State is a shareholder:

AIB

"AIB is conducting a comprehensive review of customer mortgage accounts with regard to tracker rates. AIB s review which is progressing, has found the bank fell short on its obligations to some customers. In order to prevent further detriment for the customers identified to date, AIB has in the first instance begun correcting interest rates on these accounts and writing to customers to outline their new interest rates and repayment amounts.

As the review progresses, AIB will later in the year commence refunding customers who overpaid interest and will also pay compensation. At that point, details of a set payment towards the cost of independent professional advice will also be made available to customers and the bank will have established an independent appeals process. An independent third party, KPMG, will review key aspects of AIB s work. These steps are in line with the principles outlined by the Central Bank.

The overall review will take some time to complete and other customers may be identified through this ongoing process. AIB has put in place a customer Freephone Helpline 1800 235 460 (Mon-Fri, 8:00am-7:00pm) to assist with any queries its customers may have."

PTSB

"Permanent TSB is co-operating fully with the industry-wide review of Tracker Mortgages initiated by the Central Bank of Ireland.

The bank has established a special project team to undertake this exercise and appropriate external advisers to support the project and to provide independent oversight of the project.

At this stage it is premature to speculate on the potential number of cases which may be identified through this exercise or what action might be required in respect of these cases.

This CBI led review is separate to the Mortgage Redress Programme undertaken by Permanent TSB in 2015, the results of which have been widely reported and discussed in previous PQs."

BOI"In 2015 the Central Bank of Ireland announced that it would conduct a Tracker Mortgage Examination with all lenders in Ireland. This examination is underway, and Bank of Ireland is co-operating fully with it."