he Central Bank of Ireland needs to provide the banks with a deadline for the restoration of the correct tracker rate for thousands of mortgage customers who continue to be denied their contractual entitlements, according to the Fianna Fáil Finance Spokesperson, Michael McGrath TD.
Deputy McGrath commented, “Last Thursday, the Dáil passed a Fianna Fáil amendment to a Sinn Féin private members’ motion on the ongoing Central Bank ‘Examination of Tracker Mortgages’. In keeping with that motion, it is now imperative that the Central Bank moves to provide the banks with a deadline to put customers back on the tracker rate and, crucially, the correct tracker rate.
“As we approach the end of January 2017, thousands of mortgage holders in Ireland who should be on a tracker rate continue to be overcharged by their banks,” said the Cork TD.
”Incredibly, the Central Bank has not imposed any deadline on the banks for customers to be put on the correct tracker rate. This is having an enormous impact on the mortgage holders affected. For example, a family with a mortgage of €200,000, paying a variable rate of 4% instead of a tracker rate of 1%, are being charged an extra €6,000 in interest every year or €500 per month.
“In a statement from the Central Bank last month, we were told ‘based on current progress we expect that relevant lenders will have identified and commenced engagement with impacted customers by mid-2017 with payment of redress and compensation, processing and consideration of any appeals’.
“This pace of progress and lack of urgency is simply not acceptable. The Central Bank has to ensure that customers who are being wrongly denied a tracker rate or who are being charged the wrong tracker rate are put on the correct rate without delay.
“With potentially up to 15,000 customers affected by this scandal, the Central Bank has to defend the rights of customers and ensure they receive fair play from their financial institution.
“Fianna Fáil will continue to prioritise this issue in the coming months and we look forward to further engagement at the Oireachtas Finance Committee in the coming weeks when we will hear from some of those who continue to be affected by this issue,” concluded McGrath.