Seán Haughey (Dublin Bay North, Fianna Fail)
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259. To ask the Minister for Finance his views on recent disclosures to the effect that banks denied mortgage customers their contractual right to a tracker interest rate; the role of the Central Bank in this regard; the action he will take in relation to this issue; and if he will make a statement on the matter. [41878/16]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the Central Bank has commenced an industry wide examination of tracker mortgage related issues (the "Examination") covering among other things transparency of communications with and contractual rights of tracker mortgage customers. The Examination is a key priority for the Central Bank and it continues to challenge lenders to ensure that progress is being made and fair outcomes are being achieved for customers.

The Examination is currently on-going and while 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 Examination framework also provides that lenders establish an independent appeals process to deal with customers who are dissatisfied with any aspect of the redress package that they receive from lender in respect of these matters.

The Central Bank continues to monitor lenders' progress in respect of the conduct of the Examination through direct engagement with each lender and its appointed external independent party and through on-site reviews and review of regular progress reporting.  Where necessary the Central Bank will take appropriate supervisory action, including enforcement action, to ensure that fair outcomes are achieved for consumers, as demonstrated in the outcome of a recent settlement agreement with Springboard Mortgages Limited where the Central Bank issued a reprimand and imposed a fine of €4.5million.

The Central Bank provided an update on the progress on the Examination at the end of December and a copy can be found at the following link: .