Mortgage provider ordered to repay €29,000 to couple

An unnamed building society has been ordered to repay €29,000 to a couple who were charged a redemption fee of €59,000 for switching their mortgage to another provider.

The case is one of a number outlined in a report published by the Financial Services Ombudsman today.

Joe Meade said the couple paid the fee, but made a complaint to his office claiming it was unfair and unreasonable.

The ombudsman agreed that the figure did not represent a genuine estimate of the building society's loss and he ordered that €29,000 be repaid.

Mr Meade said he had also ordered the building society in question to change its fixed-fee policy after his office received a similar complaint from another member of the public.