OREANDA-NEWS. July 30, 2015.
  • As a result of an Enforcement investigation by the Central Bank of Ireland (the Central Bank), significant failures were identified by permanent tsb and its subsidiary company Springboard Mortgages Limited (Springboard) associated with tracker mortgage options and rates.
  • Arising from the Central Bank’s Enforcement investigation, permanent tsb have agreed to implement a major redress and compensation programme (Mortgage Redress Programme) to address the detriment suffered by 1,372 impacted permanent tsb and Springboard customer accounts. The majority of the impacted customer accounts, 1,152, are accounts of permanent tsb, with the remaining 220 being accounts of Springboard. 
  • The consequences of these failures are serious and include: mortgage overpayments; mortgage arrears; legal proceedings; and in certain cases loss of ownership of properties, including some homes. 
  • permanent tsb and Springboard will contact impacted customers by letter over the next two weeks.  This is to set out specific details of the Mortgage Redress Programme as it applies to customers’ individual circumstances.
  • The Central Bank has required that a reduced interest rate be applied by permanent tsb to all relevant impacted customers’ accounts as an interim measure.  This is to allow impacted customers sufficient time to consider their options. 

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Following an enforcement investigation into issues associated with tracker mortgage rates and options, the Central Bank is requiring permanent tsb to implement a Mortgage Redress Programme to address the issues identified:

  1. permanent tsb’s failure to inform certain customers of the consequences of their decisions to break early from a fixed rate or discounted tracker period.  The consequences of breaking early were that customers lost their contractual right to be offered a tracker rate in the future (at the time that their fixed rate or discounted tracker period would have ended); and
  2. permanent tsb’s failure to inform some other customers of their right to be offered a tracker rate at the end of any fixed rate period. 

In the case of Springboard’s impacted customers, the failure arose from the application of incorrect interest rates to mortgage accounts.

permanent tsb and Springboard will be writing to all impacted customers over the next two weeks to outline the redress and compensation offer specific to their circumstances. The key elements of the Mortgage Redress Programme are: rate change, redress, and compensation.  A certain amount of money will also be provided to customers to obtain independent advice on the offer letter they will receive.

The Central Bank’s Director of Enforcement, Derville Rowland, said: “The Central Bank considers the failures identified by permanent tsb and Springboard to be 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.  To avail of the Mortgage Redress Programme, customers will have to engage with permanent tsb and respond to the letter which they will receive. We encourage impacted customers to consider their letter of offer and options carefully. We also encourage customers to use the money provided by permanent tsb or Springboard to obtain independent advice.  The Central Bank will continue to pursue its enforcement investigations against both permanent tsb and Springboard."

Further information: Press Office: 01-2246299, press@centralbank.ie

Notes to editors

Full information on the Mortgage Redress Programme is available on www.permanenttsb.ie and www.springboard.ie.  Should impacted customers have any queries in relation to the Mortgage Redress Programme, they can email permanent tsb (redress@permanenttsb.ie ) or Springboard (contactus@springboard.ie ) or they can call the following dedicated helplines:

permanent tsb

Freephone 1800 855 830 (or +353 1 215 1343 if calling from abroad), Monday to Friday, 8.00am to 9.00pm (including bank holidays) and Saturdays 10.00am to 2.00pm

Springboard

Freephone 1800 804 317 (or +353 818 220242 if calling from abroad), Monday to Friday, 9.00am to 8.00pm and Saturdays 9.00am to 1.00pm.

Dedicated senior staff from permanent tsb and Springboard will be contacting customers who have lost ownership of their property directly in the coming days to support them throughout this process.