Fianna Fáil Spokesperson on Finance, Michael McGrath has expressed alarm at the dramatic inconsistencies in compensation packages being offered to customers impacted by the Tracker Mortgage scandal.
Deputy McGrath commented, “According to the Central Bank, the compensation being paid to customers affected by the Tracker scandal should be reasonable and should reflect the level of detriment suffered by the customer. I am not satisfied that the compensation being offered by some of the banks reflects the harm they have caused to people’s lives.
“AIB appear to offer the largest package ranging between 15% and 30% for principal dwelling homes and 7.5% and 15% for investment properties. However, some lenders are paying far less by way of compensation.
“Bank of Ireland has started writing to customers with the details of their redress and compensation and in all the cases I have seen, the compensation is a flat 10% of the amount overcharged. For Ulster Bank, compensation is 12% for non arrears cases and between 13.5% and 20% for cases in arrears. The Permanent TSB compensation seems to be in the region of 10%.
“There also appears to be very large variations in payments towards the cost of getting independent professional advice. Bank of Ireland appears to be paying just €250 while AIB seems to be paying over €615. This is yet another example of the huge variations that are occurring.
“I have seen personally cases where a customer of one bank received €615 for independent professional advice where the overcharge was a mere €10.55 while another customer with another bank received just €250 for advice where the amount overcharged was over €34,000. These wild inconsistencies are alarming to say the least.
“People need clarity and they need to be treated fairly by all the banks involved. It is unacceptable that two customers with similar circumstances can have such widely different outcomes based simply on what bank they are dealing with.
“Up until now much of the attention has been rightly focussed on fully identifying all the customers involved but now, as people begin to receive compensation, they need to know that they are being treated fairly.
“My overall sense is that the compensation levels are too low in some banks, there is little effort to match the compensation level with the harm inflicted and there is no consistency across the banks. This approach needs to change, and change quickly”, concluded McGrath