Fianna Fáil Spokesperson on Finance Michael McGrath TD has said the Central Bank has signed off on its Tracker Mortgage Examination prematurely given that issues remain unresolved for a large number of affected customers.
Deputy McGrath commented, “The tracker mortgage scandal has been going on for quite some time with the Central Bank’s current review going back as far as December 2015. It is clear that some lenders have dragged their feet at every opportunity and prioritised their own interests over the welfare of customers who were wrongfully denied their tracker rates. Indeed, the scandal does not stop with today’s report.
“To this day not everyone has received their redress and compensation in full and the prevailing rate issue involving 6,000 AIB customers still remains unresolved. No doubt many of these issues and others will end up in the Financial Services and Pensions Ombudsman and even the Courts. In closing their Tracker Mortgage Examination today, the Central Bank has essentially come down on the side of the banks in respect of all cases that remain in dispute.
“The culture of Irish banks has to change. The Central Bank’s review and subsequent enforcement proceedings have to date failed to hold anyone personally responsible or accountable for this scandal. Until there is personal accountability, we will see these types of scandals occur again in the future.
“The human cost to this scandal is incalculable. Some 99 owner-occupier and 216 buy-to-let homes were wrongly repossessed as a direct result of the tracker mortgage scandal. For some of the customers involved their lives will never be the same. The new Culture Board set up to reform culture and restore trust in Irish banks has an enormous task ahead.
“The government has been too slow in bringing forward legislation to establish a senior executive accountability regime, similar to what exists in the UK. The Central Bank asked for this power to be given to them a year ago and we have yet to see the actual legislation. The government decided only last month to draft heads of the Central Bank (Amendment) Bill 2019.
“The Central Bank now must step up its efforts on its enforcement investigations into the tracker mortgage scandal. PTSB is the only lender to have been fined a record €21 million due its role in the scandal. It is critical that every lender involved is held responsible for their actions”, concluded McGrath.
