Brendan Burgess
Founder
- Messages
- 53,218
See attached
Statement by permanent tsb and Springboard Mortgages Ltd.
• permanent tsb and Springboard Mortgages Ltd write to a total of 1,372 mortgage customer accounts regarding a serious failure in respect of the management of their mortgage accounts
• Major Redress and Compensation Programmes follows enforcement investigation by Central Bank of Ireland
• Chairman and CEO of permanent tsb Group Holdings plc (“permanent tsb”) describe failure as “deeply regrettable” and offer “an unreserved apology on behalf of the Group to all impacted customers”
• The majority of failures for impacted accounts occurred between 2006 and 2011
Following an enforcement investigation by the Central Bank of Ireland, permanent tsb has announced the commencement of the Mortgage Redress Programme; a major redress and compensation programme to address the position of 1,372 mortgage customer accounts which lost their contractual right to a tracker rate mortgage in circumstances wherethere was a failure by the Group in the management of the relevant mortgage accounts.
The majority of the impacted accounts (1,152) were accounts of permanent tsb. A further 220 were accounts of Springboard Mortgages Ltd, which is a subsidiary of permanent tsb.
Impacted customer accounts may have suffered serious consequences as a result of the failures including:
• Having to pay higher mortgage repayments than should have been the case
• Going into arrears that may not otherwise have occurred
• Being engaged in legal proceedings that might not otherwise have been
necessary
• In the case of sixty‐one of the impacted accounts, customers may have lost ownership of the relevant property linked to the mortgage in situations where they may not have lost these properties if the failures had not occurred.
Comment by Chairman and CEO of permanent tsb Group Holdings plc
The Chairman and Group Chief Executive of permanent tsb Group Holdings plc (Alan Cook and Jeremy Masding respectively) described the failure by permanent tsb as “deeply regrettable”. In a joint statement they said: “the failures which occurred have had very serious consequences for impacted customers and we apologise unreservedly on behalf of the Group to them and to all our customers. We are truly sorry that this has occurred and our absolute focus now is on correcting the position of every impacted customer as speedily as possible.”
Mr. Cook and Mr. Masding said that permanent tsb was particularly focused on sixty‐one accounts where impacted customers lost ownership of their properties: “We acknowledge that the bank’s failure may have been a factor in events that ultimately led to some customers losing the property linked to the mortgage. We will do everything in our power to help these customers.”
Explaining The Failures
permanent tsb:
The circumstances in which permanent tsb’s failures arose are as follows:
• permanent tsb failed to inform certain customers fully of the consequences of their decisions to break from a fixed rate or discounted tracker rate early. 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
• Other customers had a contractual right to be offered a tracker rate at the end of any fixed rate period. However due to a failure by permanent tsb that option was not communicated to them at the end of their fixed rate period.
Springboard:
In the case of Springboard Mortgages Ltd. the failure arose from the application of incorrect interest rates to 220 mortgage accounts.
Details Of Redress + Compensation Programmes:
The Redress and Compensation Programmes for the two institutions differ only in one respect. For impacted customers of permanent tsb, as there is no certainty as to what individual customers might have chosen to do had they been informed fully at the relevant time, permanent tsb will seek their instructions on whether they choose to move now to the tracker interest rate provided for in their mortgage loan conditions, i.e. the rate which they might have moved to, but for permanent tsb’s failures.
The interest rate payable by impacted permanent tsb customers has been reduced to the level of the relevant tracker rate mortgage for an interim period to allow them to consider their options.
In the case of Springboard, the failure was that the customer was on an incorrect rate and therefore Springboard has now moved them to the correct rate and is paying the redress and compensation amounts identified.
The details for the two institutions are as follows:
Statement by permanent tsb and Springboard Mortgages Ltd.
• permanent tsb and Springboard Mortgages Ltd write to a total of 1,372 mortgage customer accounts regarding a serious failure in respect of the management of their mortgage accounts
• Major Redress and Compensation Programmes follows enforcement investigation by Central Bank of Ireland
• Chairman and CEO of permanent tsb Group Holdings plc (“permanent tsb”) describe failure as “deeply regrettable” and offer “an unreserved apology on behalf of the Group to all impacted customers”
• The majority of failures for impacted accounts occurred between 2006 and 2011
Following an enforcement investigation by the Central Bank of Ireland, permanent tsb has announced the commencement of the Mortgage Redress Programme; a major redress and compensation programme to address the position of 1,372 mortgage customer accounts which lost their contractual right to a tracker rate mortgage in circumstances wherethere was a failure by the Group in the management of the relevant mortgage accounts.
The majority of the impacted accounts (1,152) were accounts of permanent tsb. A further 220 were accounts of Springboard Mortgages Ltd, which is a subsidiary of permanent tsb.
Impacted customer accounts may have suffered serious consequences as a result of the failures including:
• Having to pay higher mortgage repayments than should have been the case
• Going into arrears that may not otherwise have occurred
• Being engaged in legal proceedings that might not otherwise have been
necessary
• In the case of sixty‐one of the impacted accounts, customers may have lost ownership of the relevant property linked to the mortgage in situations where they may not have lost these properties if the failures had not occurred.
Comment by Chairman and CEO of permanent tsb Group Holdings plc
The Chairman and Group Chief Executive of permanent tsb Group Holdings plc (Alan Cook and Jeremy Masding respectively) described the failure by permanent tsb as “deeply regrettable”. In a joint statement they said: “the failures which occurred have had very serious consequences for impacted customers and we apologise unreservedly on behalf of the Group to them and to all our customers. We are truly sorry that this has occurred and our absolute focus now is on correcting the position of every impacted customer as speedily as possible.”
Mr. Cook and Mr. Masding said that permanent tsb was particularly focused on sixty‐one accounts where impacted customers lost ownership of their properties: “We acknowledge that the bank’s failure may have been a factor in events that ultimately led to some customers losing the property linked to the mortgage. We will do everything in our power to help these customers.”
Explaining The Failures
permanent tsb:
The circumstances in which permanent tsb’s failures arose are as follows:
• permanent tsb failed to inform certain customers fully of the consequences of their decisions to break from a fixed rate or discounted tracker rate early. 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
• Other customers had a contractual right to be offered a tracker rate at the end of any fixed rate period. However due to a failure by permanent tsb that option was not communicated to them at the end of their fixed rate period.
Springboard:
In the case of Springboard Mortgages Ltd. the failure arose from the application of incorrect interest rates to 220 mortgage accounts.
Details Of Redress + Compensation Programmes:
The Redress and Compensation Programmes for the two institutions differ only in one respect. For impacted customers of permanent tsb, as there is no certainty as to what individual customers might have chosen to do had they been informed fully at the relevant time, permanent tsb will seek their instructions on whether they choose to move now to the tracker interest rate provided for in their mortgage loan conditions, i.e. the rate which they might have moved to, but for permanent tsb’s failures.
The interest rate payable by impacted permanent tsb customers has been reduced to the level of the relevant tracker rate mortgage for an interim period to allow them to consider their options.
In the case of Springboard, the failure was that the customer was on an incorrect rate and therefore Springboard has now moved them to the correct rate and is paying the redress and compensation amounts identified.
The details for the two institutions are as follows:
Attachments
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