Bank of Ireland has today provided an update in relation to the Tracker Mortgage Examination, and has set out a firm timeline for writing to customers regarding compensation.
Right to Tracker: Bank of Ireland has identified c.600 accounts where a right to, or the option of, a tracker rate of interest was not appropriately provided to the customer in accordance with their loan documentation. Customers from this group were returned to the correct rate between December 2016 and April 2017 and they will shortly receive compensation.
Rate Differential: The Bank has also identified a small rate differential, of an average 0.15%, on c.3,700 accounts on a tracker rate of interest which was not the appropriate rate specified in the account loan documentation. Customers from this group were returned to the correct rate between March 2016 and August 2017 and they will shortly receive compensation.
Next Steps: Bank of Ireland will start the compensation process for these c. 4,300 customers from 10 November. This will involve calling and writing to customers from that date setting out a full offer of compensation in each case, and advising customers of the options which are open to them.
Our process aims to compensate all customers, subject to their agreement, by the end of the year. The Bank, in line with the requirements of the Central Bank’s Tracker Examination Framework, will continue to review whether other customers should be included in the compensation process. This review will be undertaken from a customer and franchise perspective. The Bank is prioritising this review and a further update will be issued in mid-November.
Francesca McDonagh, Group Chief Executive, Bank of Ireland said:
“I unreservedly apologise to all impacted customers for the financial loss and anxiety this has caused them and their families. I am fully committed to fixing this as quickly as possible, and I made this commitment to the Minister for Finance, Paschal Donohoe TD, at our meeting on Monday.
“Since taking up my position as Group Chief Executive earlier this month, the tracker issue has been a personal priority. We have already returned impacted customers to their correct tracker rates. Our focus now is on commencing the compensation process to all impacted customers from 10 November. How we handle this critical issue will define the customer centric culture we aspire to at Bank of Ireland.
“All impacted customers must be identified as quickly as possible and treated fairly. I have reviewed the programme and directed that additional resources are allocated to deliver for our customers. The examination will continue to be a priority until the position has been resolved for every last impacted Bank of Ireland customer.”
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, email firstname.lastname@example.org, or write to the following address: Bank of Ireland Tracker Mortgage Examination, PO Box 400, Castleisland, Co. Kerry.