Permanent TSB fined €21m by Central Bank for role in tracker mortgage scandal

Permanent TSB fined €21m by Central Bank for role in tracker mortgage scandal

Permanent TSB has been fined €21m by the Central Bank of Ireland for regulatory breaches affecting tracker mortgage customers

The fine comes "in respect of serious failings to 2,007 tracker mortgage customer accounts which were impacted for the period between August 2004 and October 2018," according to a statement from the Central Bank.

This fine is the largest imposed to date by the Central Bank under the Administrative Sanctions Procedure.

The Central Bank says the fine reflects the gravity with which it views PTSB’s failings and the unacceptable harm it caused to tracker mortgage customers, from extended periods of significant overcharging to the loss of 12 family homes and 19 buy to let properties.

Permanent TSB has also been forced to pay €54 million in redress and compensation to its impacted customer accounts.

The Central Bank investigation found that PTSB denied its customers a tracker mortgage or did not put them on the correct tracker rate resulting from a number of failings including failing to warn certain customers about the consequences of decisions they might make relating to their mortgage, a lack of adequate systems, a decision to deny certain customers their correct tracker rate between 2009 and 2010 and an incorrect legal interpretation of contractual terms and conditions.

“Taking out a mortgage is the single most significant financial commitment most people will make in their lifetimes," said the Central Bank’s Director of Enforcement and Anti-Money Laundering, Seána Cunningham.

"Consumers must have confidence that lenders are acting in their best interests, particularly given the complexity of mortgage documents they need to understand in order to make the best decision.

"Our investigation found that PTSB failed to put their customers first, with distressing and, in some instances, devastating consequences."

"As part of an agreed settlement, Permanent TSB has admitted significant breaches and associated sanctions related to the Code of Practice for Credit Institutions 2001, the Consumer Protection Code 2006 and the Consumer Protection Code 2012," read a statement from the bank.

Added Chief Executive of Permanent TSB Jeremy Masding: "On behalf of Permanent TSB, I apologise unreservedly to all customers affected by the Tracker Mortgage issue, and for the distress caused as a result."

More on this topic

Tracker Mortgage Scandal: Hundreds may find their complaints judged out of date Tracker Mortgage Scandal: Hundreds may find their complaints judged out of date

Concerns raised about bank timelines for tracker mortgage scandal Concerns raised about bank timelines for tracker mortgage scandal

Higher compensation granted in appeals of over 1,000 tracker mortgage casesHigher compensation granted in appeals of over 1,000 tracker mortgage cases

99 people lost their homes over tracker misery99 people lost their homes over tracker misery

More in this Section

Huawei chief confident over future despite US export curbsHuawei chief confident over future despite US export curbs

Bets rise euro to weaken on ECB easy moneyBets rise euro to weaken on ECB easy money

Hotel group’s profits soar 44% to €8mHotel group’s profits soar 44% to €8m

US puts graphic warnings on cigarettes after court battleUS puts graphic warnings on cigarettes after court battle


Lifestyle

Timothy Grady is in Bantry this week to host a concert, and read from his classic book about the Irish in London, writes Don O'Mahony.Giving voice to the emigrant experience

A care home builds links with kids, writes Helen O’Callaghan.Inside out: Children learn what it's like to live with dementia.

When you think of someone who is “into skincare”, you probably imagine someone in a face mask.The Skin Nerd: Why face masks aren’t as important as you’d think

With the evenings closing in and a welcome chill in the air, it’s time to embrace the new season now.Make the Transition: Turn over a new leaf this fall

More From The Irish Examiner