Thursday, June 30, 2022

Standing TSB admits another 200 customers were denied tracker pledge

Standing TSB has admitted that another 200 mortgage customers were unfairly denied good value trackers.

They get the concession about three years after the Tracker mortgage exam ordered by the Central Bank is over.

With the entry of permanent TSB, 200 affected customers will receive thousands of euros in compensation and the trackers will be pledged.

It comes three years after the bank was fined €21m by the Central Bank for its tracker-mortgage failings.

The Indo Daily: Don’t trust it: Everything you need to know about switching from Ulster and KBC banks

listen on Spotify

According to the central bank, Permanent TSB abused its 2,007 Tracker mortgage customers between 2004 and 2018, a violation of 42 Central Bank regulations.

After losing the case taken to the Financial Services Ombudsman, the bank’s new concession of 200 more cases has come.

In that case a landlord complained that he took out a mortgage in 2008 at the tracker rate.

The Ombudsman agreed that the bank failed to adequately warn the complainant at the end of 2009 that by choosing a variable interest rate, he would lose his entitlement to tracker interest. The Ombudsman asked the bank to restore the customer’s tracker rate, refund the overpaid interest over a 10-year period and pay a compensation of €3,500 for “loss, expense and inconvenience”.

Read Also:  Gold Price Update: Great opportunity to buy gold cheaply, you will regret it if you miss it! Know - latest rate

Sinn Féin finance spokesman Piers Doherty was in contact with the client who won the case over the long term, claiming that the bank “fought the case tooth and nail”.

After the matter was settled, Mr. Doherty asked the bank to see if there were similar cases.

A letter sent to him from permanent TSB boss Eamon Crowley acknowledged that the bank is currently assessing the impact of the Ombudsman’s decision for other customers.

Mr. Crowley said the permanent TSB has informed the Central Bank of the Ombudsman’s decision.

“While it is too early to definitively determine the final number of accounts that will be affected by this decision, initial indications are that it will be less than 200 accounts,” Mr. Crowley said in a letter to Mr. Doherty.

Read Also:  Credit Suisse board backs CEO, chairman tells SonntagsBlick

TD said: “They have confirmed that they have so far identified 200 customers who are equally affected.

“This tracker is nearly three years after the mortgage test ended, and comes on the back of a Financial Services and Pensions Ombudsman complaint that the PTSB fought.

“This shows that banks are still not proactive in providing redressal, some are still dragging their heels.”

Permanent TSB has so far paid €54.3m in redress and compensation to 2,007 customers. The average pay-out is €27,000 each.

In a statement on the latest matters, the bank said: “PTSB has provided redressal and compensation to customers who were identified during the Tracker Mortgage Review who had the right to Tracker Mortgage.

“This case (heard by the Financial Services and Pensions Ombudsman) involves a client who was not considered affected in the Tracker mortgage examination.”

The bank said it has informed the Central Bank of Ireland of the Ombudsman’s decision.

And it is currently reviewing the implications for other customers.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news
- Advertisement -