Séamus Healy (Tipperary, Workers and Unemployed Action Group)
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290. To ask the Minister for Finance if he will recommend that an urgent amendment to the 2013 Act mentioned by a person (details supplied) be undertaken to give the Central Bank all necessary retrospective powers to compel lenders to implement redress and compensation in respect of failures that occurred prior to the 2013 Act; and if he will make a statement on the matter. [20866/17]

Michael Noonan (Limerick City, Fine Gael)
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Standard legal conventions do not allow for the formal exercise of statutory powers retrospectively.  Therefore the Central Bank does not have the statutory power to compel lenders to implement redress and compensation programmes or to set compensation levels in respect of failures that occurred prior to the introduction of the Central Bank (Supervision and Enforcement) Act 2013.

However, notwithstanding the fact that Section 43 of the 2013 Act cannot be construed to have retrospective effect, in accordance with the Tracker Mortgage Examination Framework, 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.

This should ensure that, regardless of the year of overpayment, impacted customers would be redressed and compensated, including where the overpayment was made prior to 2013.

Furthermore, as part of the examination process, the Central Bank can challenge the position which a lender may take in relation to particular groups of customers to ensure the fair treatment of tracker mortgage customers.

The Examination framework also requires lenders to establish an independent appeals process to deal with customers who are dissatisfied with any aspect of the redress and compensation offers that they may receive. In addition, impacted customers have the option of bringing a complaint to the FSO or initiating court proceedings.