Michael McGrath (Cork South Central, Fianna Fail)
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95. To ask the Minister for Finance the number of mortgage accounts identified by a bank (details supplied) in which the customer has been wrongly denied a tracker rate; the number of mortgage accounts in which the incorrect tracker rate is being applied; the number of such accounts in which the customer now has the correct rate applied to their account; the number of accounts in which the customer is still not on the correct tracker rate; and if he will make a statement on the matter. [5208/17]

Michael McGrath (Cork South Central, Fianna Fail)
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96. To ask the Minister for Finance the number of mortgage accounts identified by a bank (details supplied) in which the customer has been wrongly denied a tracker rate; the number of mortgage accounts in which the incorrect tracker rate is being applied; the number of such accounts in which the customer now has the correct rate applied to their account; the number of accounts in which the customer is still not on the correct tracker rate; and if he will make a statement on the matter. [5209/17]

Michael McGrath (Cork South Central, Fianna Fail)
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97. To ask the Minister for Finance the number of mortgage accounts identified by a bank (details supplied) in which the customer has been wrongly denied a tracker rate; the number of mortgage accounts in which the incorrect tracker rate is being applied; the number of such accounts in which the customer now has the correct rate applied to their account; the number of accounts in which the customer is still not on the correct tracker rate; and if he will make a statement on the matter. [5210/17]

Michael McGrath (Cork South Central, Fianna Fail)
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98. To ask the Minister for Finance the number of mortgage accounts identified by a bank (details supplied) in which the customer has been wrongly denied a tracker rate; the number of mortgage accounts in which the incorrect tracker rate is being applied; the number of such accounts in which the customer now has the correct rate applied to their account; the number of accounts in which the customer is still not on the correct tracker rate; and if he will make a statement on the matter. [5211/17]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 95 to 98, inclusive, 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 currently 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 and the Deputy will appreciate that this information is not held in my Department.

Below is 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. This process is ongoing. AIB s review 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. Approximately 50% of the impacted customers are EBS and the remainder AIB. You will note that AIB s CEO Bernard Byrne recently told the Joint Committee on Finance, Public Expenditure and Reform and Taoiseach that, based on an assessment of the work done to date, 14 customers may have lost their homes as a result of having the incorrect rate applied to their mortgage accounts. AIB is contacting these customers to agree appropriate compensation measures. The process involved an examination of tens of thousands of accounts and is being conducted in accordance with Central Bank of Ireland guidelines. As the review progresses, AIB is commencing refunds to customers who overpaid interest and is paying compensation. Details of a set payment towards the cost of independent professional advice will also be made available to customers and the bank will establish an independent appeals process. An independent third party, KPMG, is reviewing key aspects of AIB s work. The overall review will take some time to complete. 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

In July 2015, following an enforcement investigation by the Central Bank of Ireland, Permanent TSB announced that it had identified 1,152 mortgage accounts which it deemed should be offered the opportunity to move from a variable rate to a tracker mortgage rate because of concerns about the potential impact of administrative failures including the failure to provide full information to some account holders about the consequences of certain choices the account holders were taking earlier in the term of the accounts.  All these accounts were moved to the correct interest rate from that date.

Following this exercise, the bank commenced a review of all mortgage accounts to identify whether any other errors relating to mortgage accounts required correction and/or redress.  The bank is also cooperating with the Central Bank of Ireland in respect of its industry wide review of tracker mortgages.  The bank will update the market on the progress of these exercises in due course.

Bank of Ireland

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. On December 16 2016 the bank provided an update on the examination process. This update is available at: https://www.bankofireland.com/about-bank-of-ireland/press-room/press-releases/item/571/statement-from-bank-of-ireland-regarding-the-central-bank-tracker-mortgage-examination-process/#december. 

In respect of the other bank referred to by the Deputy, as I do not have a shareholding in that bank nor a relationship framework agreement with it. I am therefore not in a position to provide any data for that bank.