Michael McGrath (Cork South Central, Fianna Fail)
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256. To ask the Minister for Finance the range of compensation as a percentage of redress available to persons affected for each of the 15 lenders included in the Central Bank's examination of tracker mortgage-related issues; the minimum and maximum percentage compensation for same; and if he will make a statement on the matter. [47001/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Central Bank has advised that in accordance with the Tracker Examination Framework, the Central Bank expects that for all impacted customers, lenders’ redress and compensation offers will restore them to the position they would have been in had the detriment not occurred and that they are appropriately compensated for the detriment suffered.

The Central Bank expects the majority of the 13,000 impacted customers identified to date under the Examination will receive redress and compensation by year-end. The Bank has also advised that its decisions regarding the groups of customers identified as part of the Examination and disputed by some lenders to date will be issued to lenders by mid-December. As of end-September, €120m has been paid in redress and compensation to approximately 3,300 impacted borrowers. This is in addition to redress and compensation provided by permanent tsb plc (€36.8 million) and Springboard Mortgages Limited (€6.2 million) to customers pursuant to their Mortgage Redress Programme (MRP), which was required by the Central Bank and predated the industry wide Examination. Accordingly from July 2015 to end September 2017, the aggregate figure for redress and compensation to customers arising from the MRP and the Examination is €163 million.

In line with the Central Bank’s mandate to ensure that the best interests of consumers are protected, the Bank's immediate focus is to ensure that lenders prioritise the identification of impacted customers, stop the harm and then provide appropriate redress and compensation in line with the Principles for Redress. The purpose of redress is to return customers to the position they would have been in had the issue not occurred. Compensation should be reasonable and reflect the level of detriment suffered by customers.

The Central Bank Framework requires that lenders categorise impacted customers by reference to the type and level of detriment suffered. The types of detriment identified range from overcharging due to the application of incorrect interest rates up to loss of ownership of mortgaged properties.

The calculation of redress and compensation proposals for customers can be complex. The Central Bank has challenged all lenders with particular regard to their redress and compensation proposals for loss of ownership customers and as a result lenders have substantially improved their proposals.

Each lender's compensation package is tailored to the specific circumstances of its customer. Given the complexity of the issues identified by the Examination, the scale of detriment suffered is unique to each individual customer and the level of the redress and compensation payment will, therefore, be dependent on the circumstances of the individual case.

It should be noted 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 to the appeals panels required to be established by lenders. Customers’ rights to make appeals to the FSO and through the courts are also preserved.