Bankrupt couple who lost home are to get €50k compensation for tracker mortgage switch

Six people declared bankrupt stand to get thousands of euro each under a High Court-approved scheme of compensation over tracker mortgages they held with Permanent TSB.

One couple who lost their home are to receive €50,000, while €12,500 is to be paid to another man in respect of a buy-to-let property that was repossessed.

Smaller amounts, of between €3,400 and €6,500 are to be paid to three other persons who did not lose properties, the High Court heard yesterday.

Ms Justice Caroline Costello yesterday approved the arrangement concerning compensation to several bankrupts over tracker mortgages they had held with Permanent TSB.

The amounts to be paid out are to be split, with 70% going to the bankrupts and the remaining 30% going to the official administering their estates, to be distributed to their creditors.

The arrangement

comes in the wake of Permanent TSB’s admission last year that it had wrongly moved customers on tracker loans onto more expensive mortgages. The admission followed an investigation by the Central Bank.

The bank said it would compensate clients, return them to trackers and refund them under a scheme called PTSB’s Mortgage Redress Programme. About 1,400 property owners were affected. It is believed the compensation scheme will cost the bank up to €50m.

The largest sum is to be paid to a couple who lost their home, who are to each receive €25,000. Some €12,500 is to be paid to a person in respect of a buy-to-let property he owned which was repossessed, counsel said, adding that

P TSB had consented to the arrangement.

Ms Justice Costello said she was “happy to approve” the arrangement, adding that the court could see the benefit of the arrangement to all parties.


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