Tracker mortgage scandal has cost banks almost €1bn
Inquiry into overcharging for bank loans ‘extensive and complex’, says Philip Lane
Central Bank governor Philip Lane: considering all possible angles, including potential individual culpability. Photograph: Nick Bradshaw
Mr Lane said provisions by lenders caught up in the overcharging controversy increased to €969 million in March. Some €626 million was attributable to redress and compensation, and €343 million to costs.
“In short, the cost to lenders is fast approaching the €1 billion mark,” he said.
To date, 37,100 customers have been identified as having been wrongly moved off tracker mortgages or overcharged on their existing accounts.
Mr Lane told the committee that the Central Bank’s investigation into the overcharging controversy was “the largest, most complex and significant consumer protection review” undertaken by the regulator.
“This work is extensive and complex. While we are confident that most of the affected customers have been identified, we expect that there will be some further increase in the numbers affected before the examination is concluded.”
“In these investigations, the Central Bank is considering all possible angles, including potential individual culpability,” he said.
“It is important to stress that numbers alone cannot give the full picture of the detrimental, and in some cases, devastating effects that the failures of lenders have had on tracker mortgage customers, up to and including the loss of homes and properties.”