The Central Bank recently published its Tracker Mortgage final report in July 2019. That report arises from the investigation of all lenders that offered tracker rate mortgages in Ireland. The investigation originally began in 2015 when the Central Bank became aware that the tracker mortgage failings might be industry wide.
The Central Bank’s report outlined examples of failings where customers were denied their right to a tracker rate mortgage provided for in their mortgage contract as well as transparency failings by the banks where customers were denied a tracker rate even thought the documents may have created a reasonable expectation that they were entitled to such a rate. The denial of such a tracker mortgage led to significant overcharging of certain customers and over an extended period of time in some cases which had a very detrimental affect on certain customers.
The Central Bank’s report identified circa 40,100 customers affected by tracker mortgage failings and reveals that circa €683 million had been paid out in redress and compensation payments up to May 2019 in connection with those failings. Customers lost 99 principal private residences and 216 buy-to-let properties as a result of those bank failings.
The Central Bank has obligated banks to identify all affected customers and provide compensation commiserate with the detriment suffered. The banks were also required to appoint independent overseers to review such examinations. An appeals process was also imposed if customers did not believe the compensation reflected their particular circumstances. Such appeals can be brought also to the Financial Services and Pensions Ombudsman as well as the courts. Importantly, the Central Bank has required that banks cannot rely on a statute of limitations defence to defeat a claim on the basis that it was not brought within the required time period.
Tom Collins & Company Solicitors have experience of bringing proceedings for tracker mortgage failings.