Friday, December 16 – Bank of Ireland is currently conducting its examination of tracker mortgage related issues which covers, amongst other things, transparency of communications with and contractual rights of tracker mortgage customers. This is an industry wide review required by the Central Bank of Ireland.
In 2010, prior to the current Examination the Bank, under the direction of the Central Bank, undertook a desk based review of tracker rate mortgage switches which resulted in the remediation of c. 2,100 accounts.
Arising from the ongoing Examination, Bank of Ireland has identified 602 accounts where a right to, or the option of, a tracker rate of interest was not provided to the customer in accordance with their loan documentation.
Separately whilst conducting the review the Bank identified a small rate differential, of on average 0.15%, on 3,916 accounts currently on a tracker rate of interest which is not the rate specified in the account loan documentation.
The Bank of Ireland Group would like to sincerely apologise to each of these customers for these failures. The correct rate should have been applied to these accounts and we sincerely apologise for not applying the correct rate in these cases.
In line with the principles outlined by the Central Bank of Ireland, when an impacted customer is identified Bank of Ireland must stop charging the incorrect rate of interest, and apply the correct rate, to ensure that any further detriment for customers ceases as soon as possible. Bank of Ireland will now commence contact with these customers to return them to the correct tracker rate and inform them of their new payment amounts.
As the examination progresses Bank of Ireland will, over the first quarter of 2017, commence refunding customers who overpaid interest. In addition, at that point, the Bank will have established a redress and compensation scheme in line with the principles set out by the Central Bank including the payment of compensation and independent advice as appropriate and an independent appeals process. An independent third party, Deloitte, will review key aspects of Bank of Ireland’s work.
The Central Bank of Ireland Tracker Mortgage Examination will take Bank of Ireland further time to complete and conclude. Bank of Ireland is fully co-operating with the Central Bank of Ireland.
Any Bank of Ireland customer who wishes to make contact with the Bank on this issue can call the Bank of Ireland Tracker Mortgage Examination Team on 1890 882 722, or write to the following address:
Bank of Ireland Tracker Mortgage Examination
PO Box 400
Notes to Editor: The number of customers impacted is fewer than the numbers of accounts referenced as a customer may have more than one mortgage account on their property.