Banks ‘fighting’ not to pay redress for tracker mortgage scandal

Banks who overcharged customers are still fighting “tooth and nail” to avoid paying compensation for the tracker mortgage scandal, the Dáil has heard.

The Central Bank has now indicated that 33,700 customers were affected by the €1bn tracker mortgage controversy (they were kept on more expensive loans).

Speaking in the Dáil, Sinn Féin finance spokesman, Pearse Doherty, said he would bring forward legislation, next week, which would make it a crime for bankers to lie to the Central Bank, which he claimed they had.

“This means they will face a term of imprisonment,” said Mr Doherty.

He told the Dáil he had received a call from a person who had lost their home, as a result of the tracker mortgage controversy, who was “livid” at what he heard bankers tell the Oireachtas finance committee.

“He told me that, despite what the bankers were telling the committee, the bank is fighting him tooth and nail, so he does not get his proper compensation and redress.

“He told me he is left with no option, but to take this issue to the court, and he feels let down and betrayed, again and again, by the agencies that should be there to protect him.

"This is the equivalent of the State hounding its own victims.”

"The bankers stole up to a billion Euro from 33,000 families in this State. Next week I will bring forward legislation which will make it a crime for bankers to lie to the central bank - which they have done - meaning they will face a term of imprisonment." @PearseDoherty pic.twitter.com/0MS7CLA2B9

— Sinn Féin (@sinnfeinireland) February 8, 2018

Banks and lenders have already confirmed that 97 homes were lost due to the tracker debacle.

However, it is expected that this figure will significantly increase as the Central Bank examines the issue.

Mr Doherty questioned Tánaiste Simon Coveney on what the Government will do to hold individual bankers to account for the “crimes” they have committed.

Mr Coveney said the Government was supporting the Central Bank in its effort to complete the tracker examination as quickly as possible, and would be receiving a further update towards the end of March.

The Central Bank is now conducting a review of 2m mortgages, after it emerged that tens of thousands of customers were wrongly put on more expensive loans by 15 lenders, including the five biggest banks in Ireland: AIB, Bank of Ireland, Ulster Bank, Permanent TSB, and KBC have all been brought before the finance committee, in recent weeks, to answer questions on the tracker controversy.

Simon Coveney

Mr Coveney said: “The minister for finance has made it very clear that if we have to introduce new legislation in this area, then we will do that, but that will be based on the Central Bank’s report and recommendations on how we should take this forward, from a legislative point of view.”

But Mr Doherty hit back, claiming that in keeping individuals on the wrong rate, bankers had taken homes and had crippled families, financially and emotionally.

“They broke up families, they sent people to the edge, and the Tánaiste tells me, ‘if we have to introduce new legislation’. Not one banker is going to be held to account.

“The enforcement procedures of the Central Bank will slap them with a fine and the bankers will place that fine onto the pockets of their customers, in increased charges and increased rates,” said Mr Doherty.

Mr Coveney said there was a process in place.