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The Central Bank of Ireland has concluded its Enforcement Investigation in respect of Tracker Mortgages at Permanent TSB Group Holdings plc (permanent tsb)

Admitted Breaches And Fine Paid

As part of an agreed settlement, permanent tsb has admitted significant breaches and associated sanctions related to the Code of Practice for Credit Institutions 2001, the Consumer Protection Code 2006 and the Consumer Protection Code 2012.  Permanent tsb has agreed to pay a fine of €21,000,000. This figure reflects a gross fine of €30,000,000 reduced by 30% to €21,000,000 in accordance with the early settlement discount scheme provided for in the Central Bank of Ireland’s Administrative Sanctions Procedure.

Number Of Impacted Accounts

The number of in-scope (tracker) mortgage accounts operated by permanent tsb during the period (2004 – 2015) was circa 110,000. 

The Enforcement Investigation relates to a total of 2,007 mortgage accounts which were identified as impacted.  The figure of 2,007 impacted accounts includes 279 accounts which were fully remediated by permanent tsb in 2010.  All of these 2007 mortgage accounts (bar 12 where the account holders have declined to accept payments) have now been redressed and compensated by permanent tsb at a cost of c€54 million.

The bulk of the accounts identified under the enforcement investigation were first impacted in the period following the withdrawal of tracker mortgages by permanent tsb to new customers around 2008/2009 when the Bank was an operating business of the Irish Life & Permanent Group.

Quote From CEO

Speaking today, the Chief Executive of permanent tsb, Mr. Jeremy Masding said; “On behalf of Permanent TSB, I apologise unreservedly to all customers affected by the Tracker Mortgage issue, and for the distress caused as a result.

Addressing and resolving the Tracker Mortgage issue for the account holders of the 2,007 impacted accounts has been of the highest priority for the Board and Management Team in Permanent TSB.  We are confident that we have fully addressed the operational and procedural weaknesses which have been identified in this exercise and, we remain committed to improving our policies and procedures for all customers.”

Number Of PTSB Accounts As A Percentage Of Industry-Wide Impacted Accounts

Based on the latest published Central Bank of Ireland figures, the affected accounts identified in the PTSB investigation account for c5% of the industry total impacted by the Enforcement Investigation.

Payments For Redress And Compensation By PTSB

To date, permanent tsb has paid a total of c€54m in redress and compensation to impacted mortgage account holders.

Appeals Panels Set Up By PTSB

Appeal panels were established in 2015 to consider appeals from customers who were unhappy with the redress and compensation proposed. Account holders also retain the right to bring an appeal to the Financial Services and Pensions Ombudsman or the Courts if they are unhappy with the redress and compensation proposed initially or by the appeals bodies.

Changes Made By PTSB As A Consequence

Building on the lessons learnt from this issue, permanent tsb has invested heavily in enhancing the organisation's risk management and control environment.

Issued on behalf of permanent tsb by Gordon MRM
Phone number: 087 2417373
Ray Gordon

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