Minister Donohoe welcomes publication of the Final Report on the Tracker Mortgage Examination
The Minister for Finance and Public Expenditure and Reform, Paschal Donohoe, TD, has today (Tuesday) welcomed the publication by the Central Bank of the Final Report of its Tracker Mortgage Examination. This industry wide examination commenced in October 2015 and this report is the conclusion of the supervisory phase of the examination.
The Report indicates, including cases identified before the commencement of the industry wide examination, that:-
- 40,100 customers were affected by tracker related failings of their lenders (which was an increase of 300 on the previous report published last February);
- 98 per cent of those affected customers have received redress and compensation (as at end-May);
- €683 million has been paid in redress and compensation to customers.
Welcoming the final report, Minister Donohoe said:-
“While I welcome that the tracker mortgage examination has now reached this point and that impacted customers have received compensation and where possible have had their mortgage position restored, it remains utterly unacceptable that impacted customers should have been put in such a position in the first instance. It is with the deepest of regrets, I note that 99 private dwelling homes and 216 buy to let properties have been lost by customers because of the tracker failures of lenders.
The tracker scandal has left a significant mark and it will take some time to restore the reputation of the banking sector. However, this will not be done by words alone and can only be demonstrated by real actions over time where banks demonstrate that they are acting in the best interests of their customers.”
The Minister is also committed to enhancing the accountability framework for bankers and last month he received Government agreement to begin the process of drafting heads of a Central Bank (Amendment) Bill 2019 to address the serious cultural failings in the banks, which were brought to light by the Tracker Mortgage Examination.
Speaking about this bill, the Minister said:-
“This proposed legislation will address the Central Bank recommendations to drive greater accountability in the financial sector, raising the standards of expected behaviour for individuals and firms, in order to achieve better outcomes for consumers and improve the sustainability of the financial system.”