It is the largest ever fine issued by the Central Bank.
Permanent TSB has been fined €21 million by the Central Bank of Ireland in respect of “serious failings” to 2,007 of its tracker mortgage customer accounts.
The Central Bank said that the breach affected over 2,000 of its tracker mortgage customers between August 2004 and October 2018.
The fine was initially €30,000,000, but it was reduced by 30% to €21,000,000 in accordance with the settlement discount scheme provided for in the Central Bank’s Administrative Sanctions Procedure (ASP).
The statement issued by the Central Bank stated that it was the largest imposed fine to date by the Central Bank under the ASP.
“On 30 May 2019 the Central Bank of Ireland (the “Central Bank”) reprimanded and fined Permanent TSB p.l.c. (”PTSB” or the “Firm”) €21,000,000 pursuant to its Administrative Sanctions Procedure (“ASP”) in respect of serious failings to 2,007 tracker mortgage customer accounts which were impacted for the period between August 2004 and October 2018.
“PTSB has admitted in full 42 separate regulatory breaches of the Code of Practice for Credit Institutions 2001 and the Consumer Protection Codes 2006 and 2012. This marks the completion of the first in a series of ongoing industry investigations arising from the Central Bank’s Tracker Mortgage Examination (“TME”).
“This fine is the largest imposed to date by the Central Bank under the ASP. It reflects the gravity with which the Central Bank views PTSB’s failings and the unacceptable harm PTSB caused to their tracker mortgage customers, from extended periods of significant overcharging to the loss of 12 family homes and 19 buy to let properties. In addition to the reprimand and fine, to date PTSB has also been required to pay €54.3m redress and compensation to its impacted customer accounts prior to and as part of the TME.”
The Central Bank’s Director of Enforcement and Anti-Money Laundering, Seána Cunningham, said:
“Taking out a mortgage is the single most significant financial commitment most people will make in their lifetimes. Consumers must have confidence that lenders are acting in their best interests, particularly given the complexity of mortgage documents they need to understand in order to make the best decision.
“Firms must fully adhere to all legal and regulatory obligations, including the Central Bank’s Consumer Protection Codes that we have put in place to ensure that consumers are treated fairly by the firms we regulate.”
You can read the statement in full here.
LISTEN: You Must Be Jokin’ with Aideen McQueen – Faith healers, Coolock craic and Gigging as Gaeilge
