Jennifer Carroll MacNeill (Dún Laoghaire, Fine Gael)
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183. To ask the Minister for Finance the response and actions taken by the Central Bank in relation to tracker mortgages; if this situation and response will be applied to other similar cases ongoing and in the future; and if he will make a statement on the matter. [36036/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The role of the Central Bank of Ireland includes ensuring that the financial system operates in the best interests of consumers and the wider economy. The best interests of consumers are protected and confidence and trust in the financial system is enhanced through effective regulation of firms and markets.

In line with the its mandate, the Central Bank intervened with a number of lenders between 2008 and 2015 in relation to tracker mortgages, requiring, among other things, certain lenders to offer affected customers the right to return to a tracker rate and/or payment of redress and compensation while at the same time strengthening the regulatory protections for tracker mortgage customers. The Central Bank launched the Tracker Mortgage Examination (TME) in December 2015 after it became clear, through combined supervisory and enforcement work and from information from consumer advocates, members of the public and public representatives, that tracker issues could potentially be industry wide.

The TME required all lenders to review their loan book to ensure compliance with both regulatory and contractual requirements in relation to tracker mortgages. Where impacted customers were identified, the Central Bank expected that those customers receive redress and compensation in line with the detriment suffered. Approximately 42,000 customers have been identified as impacted by tracker failures by their lender and €737m in redress and compensation has been paid to those customers by their lenders. 

While the supervisory phase of the TME concluded with the publication of the Central Bank’s “Tracker Mortgage Examination Final Report” in July 2019, the Central Bank continues to monitor the outcomes of any complaints, appeals and court cases. Any person who is still not satisfied with the outcome of their engagement with their lender in relation to the tracker mortgage issue may take their individual case to the independent Financial Services and Ombudsman’ Office. 

The Central Bank’s enforcement investigations and actions build on the TME and further demonstrate its commitment to its consumer protection mandate.

To date, the Central Bank has concluded five enforcement actions against firms relating to tracker mortgage-related failings identified under the Tracker Mortgage Examination, imposing fines totalling €173.8 million.

The TME and the imposition of significant fines on lenders send strong signals to lenders that misconduct on their part will have serious consequences.

It is also important that our legislative and regulatory framework is fully up to date and that senior banking executives can be held to account.  The Central Bank (Individual Accountability Framework) Bill, which will introduce a Senior Executive Accountability Regime (SEAR) for the financial services industry, will be key to this. This Bill will be published later this month.