13,600 new tracker victims uncovered

Central Bank reveals shocking extent of scandal

A FURTHER 13,600 victims of the tracker mortgage scandal have been found since October, bringing the total number of those affected to 33,700, it has been revealed.

The Central Bank released the new figure yesterday as its governor, Philip Lane, lashed the banks’ attitude to the borrowers caught up in the scandal.

In blunt language, he said: ‘Many lenders publicly state that they put customers first. The evidence of the examination that we have seen suggests otherwise.

‘The Central Bank recognises the devastating effects that lenders’ failures have had on families and individuals.

‘That is why we’re using all our powers to force the banks into line and ensure all affected customers are included for redress and compensation.’

So far, almost €300million has been paid out in compensation and redress by the banks. Thousands of homeowners were wrongly refused a return to tracker deals after they switched to fixed rates for a period. Some banks wrongly said the trackers – which, as interest rates fell, were costing the banks money – were no longer available and put many customers on lucrative variable rates.

Some customers could not afford the new payments and some even lost their homes.

Last night it was reported that the number of owner occupiers who lost homes due to the controversy has risen from 23 to 37 since October, while the number of buy-to-let mortgage holders who lost properties is still at 79.

The five banks embroiled in the scandal are KBC, Bank of Ireland, AIB, Ulster Bank and Permanent TSB. KBC said its total number of affected customers has increased to 3,545. Bank of Ireland confirmed last month that it found another 6,000 borrowers who had been overcharged, bringing its total to 14,500. This includes the 5,000 addressed in 2010.

AIB’s number of affected customers is up to 5,402. Ulster Bank had 3,500 customers on the wrong rates and Permanent TSB 1,980. Speaking of how the banks attempted to wriggle out of returning mortgage-holders to tracker deals, the Central Bank’s financial conduct director general, Derville Rowland, said: ‘Many of the banks put up barriers by relying on legalistic approaches and narrow interpretations of contracts.

‘We relentlessly pursued them in order to force them into doing the right thing by their customers.’ Mr Rowland also warned the total figure may increase further. He said: ‘While the Central Bank’s view is that the vast majority of customers have now been identified and included for redress and compensation, we will continue to review, challenge and verify the work undertaken by the lenders and complete our intrusive on-site inspection programme.’

Thousands of refund cheques for the first 13,000 tracker mortgage cases identified earlier this year are arriving in the post.

Mr Lane said: ‘Customers can accept the redress and compensation offered and still make an appeal – they can “cash the cheque” safe in the knowledge that what they have, they hold. Redress and compensation offers cannot be reduced if a customer makes an appeal.’

Fianna Fáil finance spokesman Michael McGrath said: ‘The real story behind today’s update is that the lenders did not voluntarily reveal the full extent of the tracker mortgage scandal.’

‘What they have, they hold’