Pearse Doherty (Donegal, Sinn Fein)
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254. To ask the Minister for Finance the extent of the legal rights of persons who are in the scope of the tracker review to compensation above and beyond redress; the way the scale of such compensation might be arrived at; the person or body responsible for deciding whether to provide compensation; and if he will make a statement on the matter. [19705/17]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank has advised that it does not have the statutory power to set compensation levels or to compel lenders to implement redress and compensation programmes in respect of failures that occurred prior to the introduction of the Central Bank (Supervision and Enforcement) Act 2013.

As part of the Examination framework, where customer detriment is identified, the Central Bank has clearly articulated its expectations of lenders to provide appropriate redress and compensation to impacted customers in line with prescribed Principles for Redress.

As the Examination progresses, the Central Bank will continue to challenge the position a lender has taken in relation to particular groups of customers to ensure the fair treatment of tracker mortgage customers.

Key elements of the Central Bank’s expectations in respect of redress and compensation for impacted customers include:

- any harm is stopped at the earliest possible time after each group of impacted customers is identified;

- the interest rates applied to impacted customers’ accounts revert to the appropriate tracker interest rate or impacted customers are given the opportunity to revert to such a rate where relevant;

- redress will be provided to impacted customers to return them to the position they would have been in had lenders’ failures not occurred;

- reasonable compensation, that reflects the detriment suffered by individual customers, is provided;

- redress and compensation is to be paid to impacted customers up front at the point of offer and compensation cannot be reduced by virtue of a customer lodging an appeal;

- an additional payment is to be provided to impacted customers at the point of offer to enable them to take independent professional advice regarding the redress and compensation offers made to them;

- an independent appeals process is to be established to address complaints from customers who are dissatisfied with any aspect of the redress and compensation package that they receive from lenders; and

- lenders will undertake not to raise any time limit defences that may otherwise apply if impacted customers make complaints to the Financial Services Ombudsman (the “FSO”) or initiate proceedings before the courts.

The Examination framework also provides that lenders should establish an independent appeals process to deal with customers who are dissatisfied with any aspect of the redress and compensation offers that they receive from lenders in respect of these matters. As the Principles for Redress provide that all redress and compensation payments are made to customers on an upfront basis, customers can accept the redress and compensation offered and still make an appeal. In addition, the impacted customer has the option of bringing a complaint to the FSO or initiating court proceedings.

Template to accompany requests to the Central Bank for material for replies to PQs, Topical Interest Debates (TIDs) and any other briefing that, up to now, went to the Press Office in the Bank

It has been agreed with the Central Bank that this template will be used with effect from 24 May 2012.

From that date also, there will be a dedicated email address for requests. Please use instead of the Press email - .

Pearse Doherty (Donegal, Sinn Fein)
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255. To ask the Minister for Finance the options available to those affected by the tracker scandal who received their redress some years ago but now feel they should be entitled to compensation; and if he will make a statement on the matter. [19706/17]

Michael Noonan (Limerick City, Fine Gael)
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The Tracker Mortgage Examination is the largest, most complex and significant supervisory review that the Central Bank has undertaken to date in the context of its consumer protection mandate, involving a review of more than two million mortgage accounts by lenders.

The Central Bank framework for the Tracker Mortgage Examination requires lenders to review all mortgage accounts, including those that have been redeemed, sold or transferred to another entity by the lender, together with mortgage accounts where the customer has lost possession of the secured property for any reason (including by way of voluntary and involuntary sale).

The Central Bank also expects that customer accounts reviewed as part of previous tracker mortgage related reviews and/or investigations and deemed not impacted as part of those previous reviews/investigations will be reviewed again in accordance with the Framework. However, the Central Bank does not have the statutory power to set compensation levels or to compel lenders to implement redress and compensation programmes in respect of failures that occurred prior to the introduction of the Central Bank (Supervision and Enforcement) Act 2013.

The Central Bank has indicated that where borrowers have queries or complaints on tracker related matters they should contact their lender through the formal complaints process.

Template to accompany requests to the Central Bank for material for replies to PQs, Topical Interest Debates (TIDs) and any other briefing that, up to now, went to the Press Office in the Bank.

It has been agreed with the Central Bank that this template will be used with effect from 24 May 2012.

From that date also, there will be a dedicated email address for requests. Please use instead pqs@centralbank.ie.

Note

Any other relevant information e.g. in the case of oral questions, material which the Central Bank considers could be used for supplementary questions and for briefing the Minister

Department of Finance/Central Bank

May 2012