‘BANKS CARTEL’ IN MORTGAGE RIP-OFF

Calls for probe into ‘collusion’ as tracker scandal report released

HOMEOWNERS have been the victims of a scam “perpetuated” by banks against tracker mortgage holders since 2009, it was claimed yesterday. Campaigners described a Central Bank update on a probe it is carrying out into the scandal as “an indictment of the cartel-like activity”. An Irish Mortgage Holders Organisation spokesman said: “The findings are stark and show thousands of Irish families were systematically ripped off in a concerted intentional effort by all banks in Ireland. “Questions have to be asked about collusion given that remarkably the same issues are being brought to light across every lender in the country.” The Central Bank examination is ongoing with more than 9,900 accounts identified as being incorrectly denied tracker interest rates to date. The IMHO said there are a number of concerning issues in the report which “warrant urgent clarification”. The group claimed prior to the examination taking place more than 7,000 customers were identified as having been ripped off. However, just 1,374 of these – PTSB customers – were afforded a redress scheme while the others were simply refunded by the lender. The IMHO said this isn’t acceptable “and every borrower who was ripped off as a result of tracker mortgage issues should be afforded a redress scheme”. Chief David Hall added: “The report is an indictment of the cartel-like activity that banks engage in where they ripped off customers on a scale never seen before in Ireland. “The human impact of the tracker scandal has been immense on thousands of Irish families for years.” He said the Central Bank and lenders appear to have concocted an examination and redress programme without any input from the people directly affected”. Mr Hall added: “This is wholly unacceptable and we would urgently call for the Central Bank to, albeit belatedly, involve those directly affected in the examination and redress process. “Similarly, questions asked by the IMHO need to be urgently and transparently answered. “The Oireachtas Finance Committee need to quickly determine if the powers of the Central Bank are being appropriately and forcefully used and those responsible for this scandal being held to account.”