We have a standard variable rate (SVR) that is significantly out of line with the rest of the market.
After that admission, they should be paying refunds.
Full text of letter. I have OCR'd this, so the format is a bit odd.
[FONT="]Dear,[/FONT]
[FONT="]
[/FONT]
[FONT="]permanent tsb[/FONT]
[FONT="]56-59 St. Stephens Green[/FONT]
[FONT="]Dublin 2[/FONT]
[FONT="]9[/FONT][FONT="]th [/FONT][FONT="]May 2012[/FONT]
[FONT="]
[/FONT]
[FONT="]I was recently appointed as Chief Executive of the permanent tsb Group. I wanted to take an early opportunity to communicate with you directly to share my [/FONT]
[FONT="]views [/FONT][FONT="]on the bank and on some important commitments and decisions which we [/FONT]
[FONT="]have [/FONT][FONT="]taken.[/FONT]
[FONT="]However, [/FONT][FONT="]to start with, I want to make it [/FONT]
[FONT="]very [/FONT][FONT="]clear that I don't believe that permanent tsb has performed to an acceptable standard in recent years. As a result of some of the bank's decisions and actions, the Irish taxpayer has had to invest substantial funds when those funds could [/FONT]
[FONT="]have [/FONT][FONT="]been used much better elsewhere. Many of the bank's customers [/FONT]
[FONT="]have [/FONT][FONT="]suffered financially because of the impact of decisions which should not [/FONT]
[FONT="]have [/FONT][FONT="]been taken. I apologise for the mistakes which were made and I am determined to do all in my power to rectify them.[/FONT]
[FONT="]We have now commenced on a journey to do just that. That journey will take time and no doubt there will be frustrations along the way - for our customers and for ourselves. But I believe that we can look forward to the emergence of a new permanent [/FONT]
[FONT="]tsb [/FONT][FONT="]over the coming years more focused and more humble but alos one which reconnects with its customers and enjoys their respect and their loyalty.[/FONT]
[FONT="]As we start on this journey, I want to emphasise four key commitments which I am making on behalf of the bank.[/FONT]
[FONT="]1. We will be competitive with our rates.[/FONT]
[FONT="]We [/FONT]
[FONT="]have [/FONT][FONT="]a Standard Variable Rate (SVR) that is significantly out of line with the rest of the market. From 14th May we are reducing the home loan SVR and Loan to Value (LTV) Variable Rate by 0.5% to 4.69%, meaning lower mortgage repayments in almost 74,500 homes nationwide. We will continue to review all of our rates at regular intervals to make them as competitive as possible.[/FONT]
[FONT="]2. We will work on getting credit back into the market.[/FONT]
[FONT="]We understand that it can be difficult at the moment getting access to personal credit and we are focused on improving our internal credit policies to address this.[/FONT]
[FONT="]3. We will work constructively to help our customers in arrears.[/FONT]
[FONT="]We.u. nderstand that being in arrears is stressful. We [/FONT]
[FONT="]have [/FONT][FONT="]a wide range of options available to help everyone in this situation and we are committed to working constructively on this agenda.[/FONT]
[FONT="]4. We will act responsibly to protect the investment which the taxpayer has made in the bank.[/FONT]
[FONT="]We are very conscious of the significant investment which the taxpayer has made to support permanent tsb bank at this time. With that in mind we will act responsibly to protect that investment and the value which is in the business.[/FONT]
[FONT="][/FONT][FONT="]
[/FONT] [FONT="]Finally, we will be open and honest with you. We will endeavour to communicate with you openly and keep you informed. We are committed to doing all we can to rebuild your trust and to repay the loyalty you have shown us in the past few years.[/FONT]
[FONT="]Yours sincerely,[/FONT]
[FONT="]Jeremy Masding[/FONT]
[FONT="]CEO, permanent tsb[/FONT]
[FONT="]
[/FONT]