Mortgage Redress Programme
Money owed back to 1372 customers
What is this redress Programme?
Serious failures by Permanent TSB has led to people losing their homes, a damning investigation has revealed.
Permanent TSB, has admitted “deeply regrettable” overcharging and wrongdoing on more than 1,300 mortgage accounts.
It has set up a “major” redress and compensation scheme for its customers who were forced off their tracker loans to more expensive home loans.
The lender has admitted its wrongdoing led to customers paying higher repayments, being plunged into arrears, hit with costly legal fights and, in dozens of cases, actually losing their house.
Alan Cook, chairman of Permanent TSB, and Jeremy Masding, chief executive, said they “apologise unreservedly” for the very serious consequences of the bank’s failings. “We are truly sorry that this has occurred and our absolute focus now is on correcting the position of every impacted customer as speedily as possible,” they said in a joint statement. On the 61 people who lost their houses, in some cases their homes, they added: “We will do everything in our power to help these customers.”
How did it come to light?
The errors came to light after an investigation by the Central Bank, which ordered a redress and compensation scheme for impacted customers. Permanent TSB is to write to those customers, and those of its subsidiary Springboard Mortgages Limited who were also affected, over the next two weeks. Some 1,372 accounts were impacted - 1,152 permanent tsb accounts, with the remaining 220 being accounts of Springboard. Derville Rowland, the Central Bank’s director of enforcement, branded the failures “very serious and their consequences to be completely unacceptable”. “Our first priority has been to address the customer detriment by requiring Permanent TSB to put in place a customer focussed redress and compensation programme,” she said.
How will it work and what must customers do?
To avail of the Mortgage Redress Programme, customers will have to engage with Permanent TSB and respond to the letter they will receive.
We encourage these customers to consider this letter of offer and options carefully. Permanent TSB have said they will cover the cost for customers who wish to seek independent advice. That is what we do by the way.
Derville Rowland, the Central Bank’s director of enforcement said, "We also encourage customers to use the money provided by Permanent TSB or Springboard to obtain independent advice"
Permanent TSB said
Permanent TSB pledged to deal with the issue in a statement released this yesterday. "As a result of an investigation by the Central Bank of Ireland into the failure in respect of the management of certain mortgage accounts, we have put a Mortgage Redress Programme (MRP) in place". "This programme will address the position of certain mortgage customers who may have lost a contractual right to move to a tracker rate mortgage". "All impacted customers will receive a comprehensive information pack in the coming weeks". "This pack will explain how the failure occurred, how it impacted their mortgage and how we are addressing the issue." the statement read