PTSB appeal board set up

Permanent TSB mortgage customers who lost their home as a result of the bank’s failings can appeal the amount of compensation offered to them to an independent panel which will include the former deputy financial services ombudsman.

At least 22 families lost their home as a result of Permanent TSB (PTSB) overcharging them for mortgage repayments.

The higher repayments were identified as a key factor in borrowers losing their home in at least 22 cases while another 39 customers who lost their homes may yet fall into this category too.

The issue centred on customers who moved from tracker rates to a fixed rate mortgage but were subsequently and incorrectly denied the right to switch back to the tracker which left many customers facing much larger bills.

In total, more than 1,370 mortgage holders across Permanent TSB and its subsidiary, Springboard Mortgages were affected by the bank’s failings.

An independent review panel has been established to hear appeals from customers who lost ownership of a property or who are or have been involved in legal proceedings against the bank in relation to a mortgage.

Former Deputy Financial Services Ombudsman Caroline Gill will be joined on the review panel by solicitor and former president of the Law Society James McCourt and chartered accountant Cyril Maybury.

Affected customers can accept the bank’s initial €50,000 compensation offer and still appeal, for up to 12 months afterwards, to the panel for additional compensation or take the matter to the Financial Services Ombudsman or the courts, if they wish.

“We believe it (the Mortgage Redress Programme) will provide customers with an opportunity to appeal the redress and compensation proposals that have been made without the complexity and delays that might be involved for them in bringing the matter through the courts,” said PTSB director of transactional banking, Niall O’Grady.

Customers who lost their home will get €1,250 to put towards independent advice.

Borrowers wishing to make an appeal should contact PTSB after which they will be sent an appeal form with further details as to how to complete the process.

A second customer appeal panel will hear appeals from all other impacted customers with details to be announced in the coming weeks.