Report claims 100 KBC customers may have been taken off tracker loans

The Central Bank is to be furnished with a report which claims that at least 100 KBC customers may have been taken off tracker loans and not returned to them, it emerged last night,

RTE reported it had seen documents which were given to mortgage brokers which said customers of the bank would be returned to the low interest tracker loans once their fixed rates ended.

However, the 100 customers, who are being represented by the financial advisor Padraic Kissane, say they were prevented from returning to the loans.

According to RTÉ, Mr Kissane set is to provide a report to the Central Bank on behalf of his clients.

KBC released a statement last night saying: “KBC is progressing with the tracker review process and timings as set out by the Central Bank of Ireland and has appointed Deloitte as an independent third party in this regard. Our policy has always been that we honour all contractual entitlements with our customers.”

The Central Bank has been reviewing all Irish banks since last year to establish if any of them persuaded customers off low-cost tracker mortgages onto more expensive loans.

Several large financial institutions are said to be facing issues from the probe, including Permanent TSB.

Earlier this week, KBC announced new variable rates for new mortgage customers, as well as reducing its fixed rates for new and existing customers effective from next Tuesday.

It has also announced profits for the first quarter of 2016 at €34.2m after tax and impairment costs.


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