Permanent TSB’s tracker mortgage compensation bill may hit €50m

Some 90% of the 1,372 cases identified in Permanent TSB’s Mortgage Redress Programme have been compensated to the tune of €40m, with that figure likely to increase to €45m to €50m when the further 10% of instances are dealt with.

The programme was initiated last year to compensate customers who tried to switch from a fixed-rate homeloan to a tracker mortgage but did so without being told they could not if they had first changed to a variable rate product.

Group chief executive Jeremy Masding, speaking at the publication of PTSB’s annual results yesterday, said the bank set aside €140m to deal with this problem and has paid out €40m to date, but would not speculate on the entire cost when charges, other cases, and potential fines are added to the bill after the Central Bank’s tracker review runs its course in an estimated 12 months or more.