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RollingNews.ie

Tracker scandal: Just a quarter of PTSB customers who lost homes have appealed

Sinn Féin’s Pearse Doherty said there was an “onus” on the banks to get in contact with these customers.

Updated 8.45pm

PERMANENT TSB HAS said that of its 31 customers that lost homes as a result of the tracker mortgage scandal, just seven have appealed their case.

Over 33,700 people have been overcharged since the introduction of the product back in the 1990s – of that number, 1,980 are PTSB customers.

While the tracker mortgage offers a fixed rate added onto the European Central Bank’s moving interest rate, the bank crash in 2008 led many customers to move off the tracker and then onto a fixed or variable rate for a period of time.

But when a large number of them tried to switch back to their tracker (which they were fully entitled to do), their banks told them they couldn’t. And so people were charged a higher rate of interest on their mortgage than they should have been.

During questioning from Sinn Féin’s Pearse Doherty in a finance committee today, the bank’s management answered that it was difficult for them to get in contact with some customers due to things such as emigration.

Doherty said that such a low percentage of people were appealing was “scandalous” and there was an “onus” on the bank to go through the appeals process again.

You’ve put the onus on the victim to appeal – but what are you doing to ensure customers get [what they're entitled to]?

Permanent TSB Group HR Director Ger Mitchell wavered when Doherty asked whether the bank had confirmation that they had been in touch with the customers affected.

“This isn’t rocket science,” Doherty replied.

“If this was an outstanding payment, there would be people knocking on doors, there would be someone behind a hedge!”

Jeremy Masding Oireachtas Oireachtas

So far, €297 million in redress and compensation has been paid, and most customers who were identified by the end of September have received redress and compensation.

The Central Bank said that the examination has been designed to ensure affected customers have further options if they believe what they are being offered by their lenders is not sufficient.

“It is important to note that customers can accept the redress and compensation offered and still make an appeal – they can ‘cash the cheque’ safe in the knowledge that what they have, they hold. Redress and compensation offers cannot be reduced if a customer makes an appeal,” Central Bank chief executive Philip Lane said.

In committee today, the CEO of Permanent TSB Jeremy Masding said that he wanted it put on the record that the appeals process was implemented with the “customer at the heart”.

I stand by the approach of this management team of leading and approaching this tracker review.
“We all have views on who and what and why, but as you might expect I will stick up for Permanent TSB approach in addressing [the problem].”

The case of a woman from Dalkey affected by the tracker mortgage scandal was also raised by Fine Gael senator Kieran O’Donnell.

“How did it come that she was able to get a mortgage of €660,000 on an income of €80,000?” he asked.

“As you would expect me to say,” Masding replied, “I wouldn’t want to comment on a customer’s individual circumstances.”

KBC Bank

Wim Verbraeken, Chief Executive Officer of KBC Bank also appeared before the committee this evening.

The bank boss admitted to Doherty that some 2,500 customers are still on the wrong tracker mortgage rate. The bank committed to the committee today that those people would be placed on to the correct rate by the end of this month.

Doherty chastised the bank officials for telling the Oireachtas committee this detail before informing their own customers that they would be placed back on the proper rate by the end of February.

Dara Deering, the executive director of the bank said it has put all efforts into getting those customers on the correct tracker mortgage rate.

Additional reporting Christina Finn

Read: ‘Take a look in the mirror’: Why didn’t the Central Bank act earlier on the tracker mortgage scandal?

Read: Tracker mortgage scandal: Ulster Bank made €100 million by overcharging customers

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    Mute Niccolo Saccho
    Favourite Niccolo Saccho
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    Feb 6th 2018, 8:07 PM

    Where’s Pascal Donoghue the minister for finance in all of this?
    Fine Gael just do not care about ordinary people do they.

    139
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    Mute James Brown
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    Feb 6th 2018, 8:10 PM

    @Niccolo Saccho: rhetorical I assume. The only interest fg have is to artificially inflate property prices using cynical techniques to get the middle vote.

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    Mute David Huston
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    Feb 6th 2018, 11:12 PM

    @Niccolo Saccho: they’re still doing it, all the banks here are gouging big time.

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    Mute Kieran OKeeffe
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    Feb 6th 2018, 8:27 PM

    Like the way Pearce Doherty handles himself on the finance committee..knowledgeable and straight to the point..makes a change from the normal political waffle

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    Mute Paddy
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    Feb 6th 2018, 8:45 PM

    @Kieran OKeeffe: a much more suitable leader for SF

    36
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    Mute Derek Poutch
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    Feb 6th 2018, 8:08 PM

    If only 25% of people were paying their mortgage back to permanent tsb I wonder how long it would take them to contact these people.

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    Mute Patty Cullinane
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    Feb 6th 2018, 8:16 PM

    Quote….In committee today, the CEO of Permanent TSB Jeremy Masding said that he wanted it put on the record that the appeals process was implemented with the “customer at the heart”.

    What???? What alternate universe is he calling his answers in from?

    Another quote…“As you would expect me to say,” Masding replied, “I wouldn’t want to comment on a customer’s individual circumstances.”

    Ok Masding….how about commenting on everyone in general by telling the truth for once and admitting…’yes..we knowingly screwed our customers up the arse with no grease because we knew we could…and we enjoyed every minute of it’.

    What a putz.

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    Mute Martin Ryan
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    Feb 6th 2018, 8:07 PM

    The banks know the people who have not appealed do the right thing and get in touch with and compensate these victims of your greed.

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    Mute Paul
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    Feb 6th 2018, 8:32 PM

    @Martin Ryan: if the people want to appeal they can. Nobody needs to hold their hands.

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    Mute Vigo the Carpathian
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    Feb 6th 2018, 8:35 PM

    @Paul: They’re probably so sick (literally in some cases) of dealing with the banks that they don’t want to risk engaging in another drawn out battle with them… and the banks know it..

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    Mute Martin Ryan
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    Feb 6th 2018, 11:21 PM

    @Paul: if the people owed the bank they wouldnt be long about getting in touch they are just low life vultures.

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    Mute Jane
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    Feb 6th 2018, 8:51 PM

    They really are unbelievable. No responsibility at all.

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    Mute Brian
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    Feb 6th 2018, 8:34 PM

    Why in stories like this do they not highlight the other side of the story. Very possible the majority if not all of there people lost their homes not due to this scandal but they had defaulted massively on their mortgages or not paid a cent at all. Regardless of interest rates , these people may have been impacted by the recession, poor investment decisions or job loss and illness etc.

    Not defending the despicable behavior of the banks but it’s telling so few are appealing at they know there is more to the story than just the tracker scandal. I hope anyone that did lose to the homes to this scandal or suffered stress and anxiety due to higher repayments get the justice they deserve.

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    Mute Kenneth O Brien
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    Feb 6th 2018, 8:04 PM

    How much is the average that these banks over charged there customers

    26
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    Mute Frankly Mydear
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    Feb 6th 2018, 9:13 PM

    PTSB: Post Traumatic Stress Bank

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    Mute Jarlath Murphy
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    Feb 6th 2018, 8:40 PM

    Shortchange the Banksters and they send Sheriff to retrieve their money with penalties!

    They shortchange you and they wait for you to notice, if you do they wax lyrical about how ut upsets them more than you without offering any recompense!

    Ireland, a great little country to be a Bankster!

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    Mute Leroy
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    Feb 6th 2018, 10:09 PM

    And not a sinner will be fired for this scandal as per usual!

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    Mute Cicero
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    Feb 6th 2018, 8:19 PM

    Hiding behind a hedge huh? Pot and kettle

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    Mute gregory
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    Feb 7th 2018, 12:16 AM

    Only 31? Dont believe these stats.

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    Mute Alan Ball
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    Feb 7th 2018, 12:31 AM

    @gregory: Unlike the mainstream news ,the journal tends to ignore the reputable pollsters..They prefer the Disney approach..Imagination..it is cheaper..just like the journal.

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    Mute Alan Ball
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    Feb 7th 2018, 12:00 AM

    The ‘onus’ on the bank to act responsibly hardly reflects the actions of banks in recent times,that begs the question is the deputy really expecting them to stand up to their responsibilities towards customers. They do not do responsibility. It costs too much and would require them to admit their mistakes.That is something the do not do as a matter of course on a day to day basis.

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    Mute Steve Watson
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    Feb 8th 2018, 1:40 PM

    Is it not time to take your money out of permanent tsb and put it somewhere else

    3
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