'Tell PTSB to end cashback mortgages' before go-ahead to take €7.6bn loans from Ulster Bank

Permanent TSB said it was "not appropriate to comment" on individual submissions, and that Ulster customers "will be offered competitive products and services".

Consumer advocate Brendan Burgess said Permanent TSB (PTSB) should be free to acquire €7.6bn in loans from Ulster Bank, as long as it gets rid of cashback mortgages and treats new and existing customers in the same way. 

In a submission to the Competition and Consumer Protection Commission, the founder of the Askaboutmoney website said the watchdog need not impose any new major restrictions as long as it bans Permanent TSB from what he said were longstanding consumer-unfriendly practices. 

However, Mr Burgess said the CCPC should ensure Permanent TSB set up a unit for Ulster Bank customers and secure "a commitment by Permanent TSB to reform its lending practices for all its customers". 

The watchdog decided late last year to submit to a full scale scrutiny, or so-called Phase 2 investigation, the agreement by Ulster to transfer €7.6bn in loans to Permanent TSB and for Ulster-owner NatWest to take a stake of almost 17% in Permanent TSB. It asked for submissions on the deal.

Permanent TSB said it was "not appropriate to comment" on individual submissions, and that Ulster customers "will be offered competitive products and services".       

The CCPC is involved in an unprecedented activity into Irish banks after both Ulster, the No 3 general lender, and KBC, a significant mortgage bank, announced plans to exit Ireland.

On New Year's Eve, the watchdog announced a Phase 2 probe into plans by AIB to take €4.2bn in corporate loans from Ulster Bank “to establish if the proposed transaction could lead to a substantial lessening of competition in the State”.

The watchdog has already launched a full Phase 2 probe into plans by Bank of Ireland to get €8.8bn in home mortgages and €4.4bn in deposits from KBC, and, separately, is scrutinising plans involving major Irish banks to set up a banking payments app called Synch.