Permanent TSB admits another 200 customers have been denied Tracker mortgages

Permanent TSB has acknowledged another 200 mortgage customers were wrongly denied cheap trackers.

The concession comes nearly three years after the central bank’s mandated mortgage review was due to close.

TSB’s permanent approval is expected to result in the 200 affected customers receiving thousands of euros in compensation and tracker mortgages.

It comes three years after the bank was fined €21 million by the central bank for its tracker mortgage defaults.

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According to the central bank, Permanent TSB abused 2,007 of its tracker mortgage customers between 2004 and 2018, in violation of 42 central bank regulations.

The bank’s new concession of 200 more cases comes after it lost a case brought to the Financial Services Ombudsman.

In this case, a homeowner complained that he had taken out a mortgage at a tracker rate in 2008.

The Ombudsman acknowledged that in late 2009 the bank failed to adequately advise the complainant that by opting for a variable interest rate he would lose his entitlement to tracker interest. The ombudsman asked the bank to restore the customer’s tracker interest rate, refund overpaid interest over a 10-year period and pay €3,500 in compensation for “loss, costs and inconvenience”.

Sinn Féin’s finance spokesman, Pearse Doherty, has been in contact with the client who won the case for a long time, claiming that the bank “fought this case tooth and nail”.

After the case was settled, Mr. Doherty asked the bank to see if there were any similar cases.

A letter sent to him by permanent TSB chief Eamonn Crowley acknowledges that the bank is currently assessing the impact of the Ombudsman’s decision on other customers.

Mr Crowley said the Permanent TSB had informed the Central Bank of the Ombudsman’s decision.

“While it is too early to determine the final number of accounts that will definitely be impacted by this decision, early indications are that it will be fewer than 200 accounts,” Crowley said in a letter to Mr. Doherty.

The TD said: “They have confirmed that to date they have identified up to 200 customers who are similarly impacted.

“This is almost three years after the tracker’s mortgage review was completed and follows a complaint from the Financial Services and Pensions Ombudsman, which the PTSB has been campaigning against.

“It shows that banks are still not proactively making amends, some are still hesitating.”

Permanent TSB has so far paid €54.3 million in redress and compensation to 2,007 customers. The average payout is €27,000 each.

In a statement on the recent cases, the bank said: “The PTSB has provided redress and compensation to customers who, during the Tracker Mortgage Review, were determined to be eligible for a Tracker Mortgage.

“This case (heared by the Financial Services and Pensions Ombudsman) involves a customer who was not deemed affected by the tracker’s mortgage screening.”

The bank said it had informed the Central Bank of Ireland of the Ombudsman’s decision.

And it is currently evaluating the impact on other customers. Permanent TSB admits another 200 customers have been denied Tracker mortgages

Fry Electronics Team

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