The Central Bank’s investigations into the mortgage tracker scandal are far from over, according to a leading financial adviser.
It recently emerged that 1,100 other AIB clients were charged interest on their mortgages from subsidiaries of EBS and Haven banks.
More than 40,000 borrowers have been caught up in controversy since news of the overcharging broke in 2015.
Last year, the permanent TSB was fined 21 million euros by the Central Bank for its involvement in tracker mortgage scandalIreland. Mortgage broker and debt advisor Michael Dowling says fines have yet to be imposed on other lenders.
“We have only had one fined bank so far and that is the permanent TSB for what happened with the original tracker scandal.”
“All the other banks have planned fines from the central bank, but they have not imposed fines on the other bank.”
Another problem is that with people out of work due to Covid-19, fewer people will be able to restart their mortgage payments.
Lawlorkiernan.ie believes that nearly 50% of people on payment leave will face this problem.
“Well, unfortunately we’re going to have a significant number of people who won’t have jobs to go back after the current pandemic.”
“Some people will go back to jobs where their income has declined. With 70,000 odd people currently on payment interruptions, at least half of those people will not be able to pay their long-term mortgage.”
Overall, the number of new mortgage agreements fell 48% in May compared to the same month last year.
The Central Bank of Ireland says this is the biggest annual drop since the records began.
But the number of renegotiated mortgages this month is up 27% from May 2019.
Tracker mortgage scandal
KBC Bank Ireland was fined for “serious breaches” against the holders of 3,741 accounts with such a mortgage. KBC sold them from 2003 to 2008, when the bank withdrew them from the market, during the financial crisis, because they were no longer profitable, according to the regulator.
We are talking about a dozen offenses. The amount of the fine is as high as possible given their “seriousness”. According to the Irish Central Bank, the impact was “devastating” and customers lost 66 properties.
The fine is in addition to the 153.5 million euros that KBC Ireland has already paid in compensation.
Tracker mortgages are linked to the European Central Bank interest rate and have been offered by all Irish banks in the past. However, the sharp drop in interest rates by the ECB made these loans loss-making for the banks.
Many clients were then enticed to opt for another loan or ended up paying more than what was initially agreed. The scandal only emerged in 2015,
when the Irish Central Bank decided to launch an investigation into the entire banking sector. Lawlorkiernan.ie is law firm in Dublin Ireland have specialized solicitors in Dublin working on tracker mortgage cases. Contact to start your mortgage overcharging calculation and get your compensation.