More than 8,500 customers covered in tracker mortgage inquiry

Minister for Finance Michael Noonan has confirmed the number of customers covered by the Central Bank investigation into how financial institutions handled tracker mortgages is higher than the estimated 8,500.

Mr Noonan said Central Bank governor Philip Lane had said a figure of 15,000 might be a "high estimate''.

The Minister was replying to Dáil questions on the removal of the right of bank customers to tracker mortgages. Mr Noonan said what happened was “outrageous’’, adding that the Central Bank was independent.

"I think it is important to put on the record as well that the Central Bank has statutory reporting obligations to An Garda Síochána and to other agencies where it suspects a criminal offence may have been committed by a supervised entity.''

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Sinn Féin finance spokesman Pearse Doherty said some of the financial institutions involved were banks owned by the State.

Accountability

“Until we have individual accountability, instead of a fine that will be issued by the Central Bank, then this practice will continue and continue,’’ said Mr Doherty.

It was one of the biggest financial scandals witnessed in recent times. He said the amount of money to be restored to customers was in excess of over €100 million, possibly €200 million. It is a massive theft.’’

Mr Doherty said it was not a systems error or a problem with communication. Over 100 people had lost their family homes, while others were bankrupted.

“It is unbelievable what has happened, and the Central Bank did not pick it up for many, many years.’’

Mr Noonan said it stretched the “bound of coincidence that all of these institutions would have arrived separately at a conclusion to proceed incorrectly’’.

Serious questions

Fianna Fáil

finance spokesman Michael McGrath said serious questions had to be asked, and needed to be answered.

“This is a scandal. This is disgraceful treatment of mortgage customers, Minister, and the Central Bank is going to have to fully exercise its statutory powers in this respect to ensure this issue is comprehensively dealt with.’’

He said they needed to know how it had happened and who knew about it because it was widespread.

Mr Noonan said it was a very serious situation, adding that 15 lenders were covered by the inquiry. He said it would be up to the Central Bank to come forward with proposals.