Mattie McGrath (Tipperary, Independent)
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97. To ask the Minister for Finance the measures he is taking to address the ongoing tracker mortgage controversy; the number of mortgage holders affected; and if he will make a statement on the matter. [2406/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Owing to the seriousness of the tracker mortgage examination and the unacceptable behaviour of the banks, I have taken a number of actions with the interests of consumers in mind. 

Subsequent to the Central Bank's October progress update report on the tracker examination I mandated the Central Bank, under section 6A of the Central Bank Act 1942, to prepare a report on:

- the current culture and behaviour and the associated risks in the retail banks, and

- the actions that may be taken to ensure that banks prioritise customer interests in the future.

On foot of this report, the Government will determine whether any additional legislative and regulatory changes are needed that would enhance accountability in the banks to ensure customer interests are prioritised. This report is expected to be provided around Q2 2018.

I also announced two additional initiatives at the end of last year to further promote the interest of consumers. These are:

- double the level of compensation – to €500,000 – that the Financial Services and Pensions Ombudsman may award to a consumer who has been adversely affected by the action of a financial services provider.

- appoint two new members to the Central Bank Commission who will have a strong consumer protection profile.

In terms of the number of impacted mortgage holders identified, based on the Central Bank's latest progress update, as at end-December 2017, lenders have included circa 33,700 customers as affected by tracker mortgage failings with €316 million paid so far in redress and compensation. This includes 7,100 cases involving tracker mortgage issues which were remedied outside of the examination framework.

While the Central Bank’s view is that the vast majority of impacted customers have now been identified and that known issues around disputed groups in respect of lenders have now been resolved, the Bank will continue to review, challenge and verify the work undertaken by the lenders and complete their intrusive on-site inspection programme. The Government will continue to support the Central Bank in its efforts to complete the tracker examination as quickly as possible, and I look forward to receiving a further update report from the Central Bank in due course on the basis of end-March 2018 data.