Written answers

Thursday, 24 November 2016

Department of Finance

Tracker Mortgage Data

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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79. To ask the Minister for Finance the status of the tracker mortgage redress scheme for each bank affected; and if he will make a statement on the matter. [36752/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The Central Bank is undertaking an examination of tracker mortgage related issues covering among other things transparency of communications with and contractual rights of tracker mortgage customers. The Tracker Mortgage Examination remains a key priority for the Central Bank as it continues to challenge lenders to ensure that progress is being made and fair outcomes are being achieved for customers.

All lenders have developed a detailed plan and framework, including establishing appropriate governance and reporting structures, for conducting the Examination and are carrying out internal reviews of their mortgage books, to identify any customers who may have been impacted by a failure to honour a customer's contractual entitlements, or comply with the regulatory requirements regarding disclosure and transparency of information.

While all lenders are currently in the process of carrying out their internal reviews it is important to note that some lenders may have their internal reviews completed sooner than others depending on the size of their mortgage books and the complexities associated with them completing the Examination.

As groups of impacted customers are identified, in the first instance, the lender must stop charging the incorrect rate of interest on the customer's account, and then communicate this to the customer, to ensure that any further customer detriment is stopped as early as possible.

Once a full review of the customer's account is complete, following external independent third party assurance, the lender will then 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.

The Central Bank has informed me that it will provide an update on progress on the Examination before the year end and that it can provide a copy of this update to the Deputy.

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