Practice areas Tracker Mortgage Overcharging

Since 2010, the Central Bank has been looking into tracker related issues with various lenders. Following an industry-wide review carried out by the Central Bank in 2015, it was decided to formally implement the Tracker Mortgage Examination and 15 lenders were notified what this would entail.

The review revealed for example that Permanent TSB was overcharging customers on their mortgage. AIB was held up for having a similar practice. As Central Bank investigations widened and deepened, it became evident that the tracker mortgage scandal was much worse than initially thought.

In 2019, after having secured redress and compensation of €683 million for approximately 40,100 customers, the Central Bank published its final report and concluded the supervisory phase of the Examination. The Central Bank’s involvement has since been limited to enforcement investigations and monitoring complaints, appeals and court cases.

About a year after the Central Bank concluded the supervisory phase of the Examination, one of the complaints to the Financial Services and Pensions Ombudsman (FSPO) led to a significant decision for AIB mortgage customers affected by the tracker mortgage scandal and caused AIB to set aside a further €300m to cover further redress and compensation for up to 5,900 affected customers.

It is clear therefore that despite the Central Bank’s conclusion of a significant phase of the Examination, we are still uncovering the true extent of the fallout from the tracker mortgage scandal. New categories of customers affected by it are regularly coming to light. However, generally mortgage takers affected by the scandal will fall within one of the following three groups:

  • Borrowers who were denied the right to a tracker interest rate altogether;
  • Borrowers who were not given the option of a tracker interest rate; or
  • Borrowers who were not provided with 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 tracker mortgage compensation.

If you have questions, please contact us on 01 872 5255 or niall@lawlorkiernan.ie.