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


09 November 2017
STAAR Surgical Company (STAA) Announces Quarterly Earnings Results
The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, "The Little Book that Beats the Market". Of course if investors end up selling winners too early, they will most likely be leaving too much profit on the table.

09 November 2017
VW blames drivers failing to fit new software for dirty diesel cars
According to Mary Creagh, chair of the Commons' Environmental Audit Committee, the rate at which vehicles are being dealt with has "stalled".

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
Star Wars Battlefront 2 lays out its FREE DLC Plans
Experience rich and living Star Wars multiplayer battlegrounds across all three eras: prequel, classic, and new trilogy. Will you champion the Light Side or secure galactic dominion for the Dark Side? Choose wisely and you will be rewarded.

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
Woman critically injured in Oshawa crash dies in hospital
The 35-year-old woman rushed to hospital following a five-vehicle collision on Harmony Road in Oshawa on November 6 has died. A loaded dump truck "somehow collided with four other vehicles", Durham Const.

09 November 2017
This Is How Apple Pay Cash Works On The iPhone
To add a card, open the Wallet app tap the "+" icon in the top-right corner scan your card enter the requested information . Apple Pay Cash will allow you to make payments with the already existing debit and credit cards in the Apple Credit.

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
BB&T Corporation's (BBT) Buy Rating Reiterated at Royal Bank Of Canada
The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link . The stock has a market cap of $39,035.81, a PE ratio of 16.33, a price-to-earnings-growth ratio of 2.28 and a beta of 1.00.

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.