Economy

Central Bank forces BoI to compensate extra 6000 tracker customers

Central Bank forces BoI to compensate extra 6000 tracker customers”

Update 5.41pm: Opposition finance spokespeople have issued statements criticising the news that another 6,000 Bank of Ireland customers were wrongly denied a lower cost tracker mortgage.

The bank has also made a decision to move 3,700 of the previously identified customers to a lower tracker rate than they had been offered earlier.

It also said it has continued to review whether further customers should be included in the compensation process and has "agreed to include an additional 6,000 accounts within the scope of the compensation scheme". This brings the total number of impacted customers to 10,300.

Central Bank governor Philip Lane had recently told the Oireachtas Finance Committee that in the case of two institutions, customers had been told they were not impacted when the Central Bank believed they were.

"As a effect, the group will be making an additional provision in its financial accounts in the fourth quarter of 2017 of between EUR150 million and EUR175 million primarily in respect of redress and compensation associated with these additional 6,000 accounts", said the bank.

Bank of Ireland said its core tier 1 capital ratio would fall back to 12.5 percent from 12.8 percent as a result of the provision, wiping out the increase in capital it recorded in the third quarter.

The new figure is understood to include 2,000 bank staff that Bank of Ireland was resisting including in its tracker remediation scheme, despite pressure from the Central Bank.

"We have been provided with no information as to why these customers have been excluded up to now", he said.

Bank of Ireland said the first 4,300 customers identified can expect to be compensated by the end of this year.

"Since taking up the role of CEO in October, making progress on the tracker issue has been a top priority", chief executive Francesca McDonagh said.

Bank of Ireland said the reinstatement of mortgages to a tracker rate, with EUR375 million now outstanding, means its net interest margin from "2018 onwards" will fall by one basis point.

"We note the announcement today that, following robust challenge by the Central Bank, Bank of Ireland will now include disputed groups of customers in the tracker examination for redress and compensation", the Central Bank said.

It says it is now working to ensure that compensation payments are made as swiftly as possible to all affected customers.

"I unreservedly apologise to all impacted customers for the financial loss and anxiety this has caused them and their families".



Like this

loading...
loading...

Latest


09 November 2017
The First Trust Advisors LP invests in Signet Jewelers Ltd. (SIG) Shares
The company reported $1.33 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.10 by $0.23. Northcoast Research restated a "neutral" rating on shares of Signet Jewelers Limited in a report on Friday, September 29th.

09 November 2017
Quebec City - UNESCO City of Literature
Chennai , one of the 64 cities designated as UNESCO Creative Cities last month, was chosen for its contribution to music.

09 November 2017
Tractor Supply Breaks Above 200-Day Moving Average - Bullish for TSCO
Finally, Allegis Investment Advisors LLC grew its position in shares of Tractor Supply by 1.7% during the 2nd quarter. Los Angeles Mgmt And Equity Rech holds 0% or 30,219 shares in its portfolio. 8,918 were accumulated by Tower Bridge.

09 November 2017
Price Target Review: The Kraft Heinz Company (KHC)
Looking at some more average volume numbers, the 20 day is 4035660, and the 50 day average volume is noted as 3668054. Company's EPS for the past five years is valued at 0%, leading it to an EPS value of 0% for the next five years.

09 November 2017
CSX Corporation (CSX) Receives $53.70 Average PT from Analysts
Finally, Madden Advisory Services Inc. acquired a new position in shares of CSX Corporation during the 1st quarter worth $155,000. This buyback authorization permits the transportation company to repurchase up to 1% of its stock through open market purchases.

09 November 2017
Unofficial numbers show Democrats dominate Election 2017 in Ridgefield — Blue sweep
Town Board member Terry Middleton ran unopposed for supervisor in Fort Edward, following the retirement of Mitch Suprenant. Suffolk Democrats held onto control of the Suffolk legislature Tuesday while losing their supermajority by a single seat.

09 November 2017
Raleigh, Charlotte among top 10 most affordable metros for renters, study says
Despite this, almost half of all US renters - 49.7 percent nationwide - still pay too much income in rent, the study reports. But bigger cities in the South, along with communities in the Rust Belt and Midwest, are more affordable for renters.

09 November 2017
NS&I Boost Saver and ISA Rates, and Premium Bond Prize Pot
The number of £1 million prizes will remain the same, at two, according to NS&I's estimates. It's probably best not to think of them as a savings account.

09 November 2017
Netanyahu To Be Grilled By Police In Corruption Probes
Dermer was questioned for intervening on behalf of Netanyahu and requesting a visa for Milchan from former United States Secretary of State John Kerry.

09 November 2017
Bainco International Investors Grows Holdings in United Parcel Service, Inc. (UPS)
United Parcel Service has $128.0 highest and $88 lowest target. (NYSE:UPS) earned "Buy" rating by Citigroup on Tuesday, August 8. Stifel Nicolaus maintained United Parcel Service, Inc. (NYSE:UPS) has risen 2.10% since November 9, 2016 and is uptrending.