Statement from Bank of Ireland Group – Conclusion of Central Bank of Ireland Enforcement Investigation on Tracker Mortgages

Bank of Ireland Group has apologised to customers for a wide range of failures in relation to the tracker mortgage issue. This includes an apology for the failures which led to customer harm and detriment, and for the length of time it took to recognise and resolve the issues which added to customer distress.

Gavin Kelly, Interim Chief Executive, Bank of Ireland Group said:

“Today’s statement from the Central Bank of Ireland is extremely critical of Bank of Ireland. We understand – and fully accept – why this is. What took place in relation to tracker mortgages was wrong. It should never have happened. We are very sorry that it did.

“We unreservedly apologise to all customers harmed by the tracker mortgage issue. The impacts were significant and wide reaching, up to and including loss of homes in the most serious of cases.

“Banking is based on trust, but our failures damaged that trust. We have learned the hard lessons, and have taken steps to ensure we are a more customer-focused bank today. This work continues. Rebuilding the confidence of both our customers and the wider society we serve will take time, but we are committed to that journey.”

Bank of Ireland has admitted in full to 81 separate regulatory breaches. This includes the provision of unclear contractual documents to its customers, the failure to interpret these unclear documents in customers’ best interests, unfair complaints handling, deficient mortgage systems and controls, and wrongful exclusion of customers from the protections of the Tracker Mortgage Examination.

To address these serious failures, the Bank has taken a number of steps. As a priority, the Bank has invested significantly in building a more open, transparent, and customer-focused culture across all of its businesses. This is critically important work, and the Bank is committed to doing more to continually improve culture over the years ahead.

The Bank has also put in place enhanced governance processes for the introduction, amendment or withdrawal of products and services – and the management of complaints – to ensure customer rights and protections are fully considered. In addition, mortgage documents have been reviewed to ensure they are clear and transparent.