Bank of Ireland to pay millions in fine over tracker scandal

The Central Bank is expected to impose a multi-million euro fine on BANK of Ireland tomorrow.

The bank has committed €120m to deal with tracker-related issues, including an expected fine.

It’s the last of the big lenders to be fined over the Tracker mortgage scandal.

Earlier this summer, AIB and its EBS unit were fined nearly €100 million for refusing mortgages for people trackers.

The AIB Group erroneously denied nearly 13,000 borrowers their right to then cheap mortgages linked to the European Central Bank’s base rate.

The Bank of Ireland has been forced to indemnify more than 15,000 Tracker customers, the largest number of any lender to date with tracker mishandling.

These cases include people who were incorrectly denied a tracker and homeowners who were on the wrong tracker plan.

In some cases, banks have misinterpreted legal or contractual terms and denied some customers their right to a tracker.

Banks have also failed to warn customers of the consequences of canceling their tracker mortgage to opt for a fixed rate for a period of time. These people were told at the end of the set period that they could no longer come back to their inexpensive tracker.

In June, the central bank fined AIB Group €96.7 million for its consumer protection violations during the Tracker mortgage scandal.

It was the largest fine imposed by the central bank during its investigation into tracker mortgage accounts.

A tracker mortgage is a type of home loan in which the rate charged on the mortgage tracks that of another publicly available rate, typically the rate set by the ECB.

The five main banks involved in the Irish mortgage scandal are AIB, KBC, Permanent TSB, Bank of Ireland and Ulster Bank. EBS, a subsidiary of AIB, and Springboard Mortgages, a subsidiary of Permanent TSB, were also involved.

Around 40,000 customers were mistakenly removed from their tracker mortgages at all lenders and switched to a higher interest rate. In some cases, people lost their homes due to the scandal.

Francesca McDonagh, former Bank of Ireland CEO, said resolving the bank’s tracker issues was a top priority for her when she took up the role.

“I believe the way we approach this issue will define the client-centric culture we strive to achieve at Bank of Ireland and as such I have made solving this issue my personal priority since joining the bank am,” she said.

https://www.independent.ie/business/personal-finance/banking/bank-of-ireland-to-be-fined-millions-over-tracker-scandal-42023931.html Bank of Ireland to pay millions in fine over tracker scandal

Fry Electronics Team

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