In 2015, it was revealed that Permanent TSB was overcharging customers on their mortgage and then in 2016, AIB was held up for having a similar practice. While the Central Bank started investigations, it acknowledged that the tracker mortgage scandal could be worse than initially thought.
In fact, on foot of a recent decision from the Financial Services and Pensions Ombudsman (FSPO), AIB set aside a further €300m to cover up to 5,900 tracker cases in which the bank had previously been resisting acknowledging any overcharging and compensating customers accordingly.
This scandal is worrying since banks make a lot of profits from the interest rate that they levy on the mortgage amount. It runs into billions of euros, but more importantly, the overcharging has affected countless people across the country, and new categories of customers affected by it are regularly coming to light.
According to the available information, the different scenarios where mortgage takers have been affected by the scandal are as follows: -
- Borrowers who were denied the right to a tracker interest rate
- Borrowers who were not given the option of a tracker interest rate
- Borrowers who were not provided the correct tracker interest rate as per their contract
Banks are mandated by law to rectify the error, but you can also sue for more compensation. If you feel you, as a homeowner, have been overcharged by your bank, get in touch with us.