By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Africa Housing NewsAfrica Housing News
Notification Show More
Aa
  • Home
  • News
  • Real Estate News
  • Nigeria Property News
  • Join Us
    • About Us
    • Contact Us
    • Join Us
Reading: Irish Banks Pay Out Close to $770 Million in Mortgage Scandal
Share
Aa
Africa Housing NewsAfrica Housing News
  • Home
  • News
  • Real Estate News
  • Nigeria Property News
  • Join Us
Search
  • Home
  • News
  • Real Estate News
  • Nigeria Property News
  • Join Us
    • About Us
    • Contact Us
    • Join Us
Have an existing account? Sign In
Follow US
Africa Housing News > Blog > Mortgage News > Irish Banks Pay Out Close to $770 Million in Mortgage Scandal
Mortgage News

Irish Banks Pay Out Close to $770 Million in Mortgage Scandal

Fesadeb
Last updated: 2019/07/17 at 12:33 PM
Fesadeb Published July 17, 2019
Share
SHARE

Irish banks paid out more than three quarters of a billion dollars to customers who were overcharged on their mortgages, a scandal that has tarnished the industry for a decade since the financial crisis.

Lenders handed 683 million euros ($768 million) to customers by the end of May, the nation’s central bank said Tuesday in its final report on the so-called tracker scandal — an increase of 36 million euros since February. Banks identified about 40,100 affected accounts, with 98% of those having received redress and compensation.

“The scale of lenders’ tracker mortgage failings was industry-wide, causing immense distress and damage to affected customers and their families,” said the central bank’s director general for financial conduct, Derville Rowland. “We continue to pursue lenders through our enforcement investigations.”

Tracker mortgage loans were closely tied to the European Central Bank’s key interest rate, and came into vogue before the crash that devastated the Irish economy from 2008. Bank funding costs surged as the financial system teetered on the edge of collapse, meaning such loans became money-losers for banks as the ECB slashed interest rates. Many customers were subsequently placed on an incorrect rate.

The central bank ordered banks that offered tracker mortgages to review their loan books in 2015. That review revealed a pattern of overcharging. The regulator handed Permanent TSB Group Holdings Plc a record fine for its role in the scandal in May, and has said it’s investigating the nation’s other main lenders.

Source: Bloomberg

You Might Also Like

FG Rolls Out Housing Scheme to Retain Doctors Amid “Japa” Crisis

U.S. Mortgage Applications Decline for Third Consecutive Week Amid High Rates

HDAN Hails Shehu Osidi @ 60: A Man of Vision

AG Mortgage Bank Hands Over 100 Housing Units of Grandlovo Estate to NSCDC Personnel

Nigeria @64: Assessment of Mortgage Institutions in Nigeria

Join Our Whatsapp Group

Contact Image

Join Our WhatsApp Channel

Housing TV Africa is the First Housing News Television
in Africa on Startimes Channel 149 bringing you
Housing News, Mortgage News, Construction News etc

Fesadeb July 17, 2019 July 17, 2019
Share this Article
Facebook Twitter Email Print
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

© Africa Housing News. All Rights Reserved 2024

Welcome Back!

Sign in to your account

Lost your password?