Central Bank fines EBS €13.4m

Brendan Burgess

Founder
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47,212
Enforcement Actions Notice – 23 June 2022

Central Bank concludes Allied Irish Banks p.l.c. and EBS d.a.c. Tracker Cases




On 23 June 2022, Central Bank of Ireland announced the completion of enforcement actions against Allied Irish Banks p.l.c. (AIB) and EBS d.a.c. for consumer protection breaches relating to tracker mortgages. The Central Bank imposed fines of €83.3m and €13.4m respectively. The outcomes represent the fourth and fifth tracker mortgage enforcement outcomes, with just one firm-level investigation remaining open in relation to a separate lender. The fines bring the total sanctions imposed on lenders for tracker mortgage failings to €174m, on top of €737m paid to customers in redress and compensation under the Central Bank-initiated Tracker Mortgage Examination.
 

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Brendan Burgess

Founder
Messages
47,212
The Firm failed to improve processes over a number of years, even after complaints were made
by customers and where the internal audit function identified an issue involving 957 tracker
customer accounts, in 2006. At that time, EBS failed to remediate those impacted customers,
and they continued to be overcharged until the issue was uncovered due to the enforcement
investigation. Those customers were eventually provided with redress and compensation in
2020.
 

tonymac

Registered User
Messages
227
And EBS still havent dealt with the VBR cohort which appear to be the forgotten group. An adequate explanation as to what is a VBR mortgage and why it tracked the ECB rate especially between 2004 and 2008 has never to my knowledge ever come out. A number of cases are with the ombudsman a long time now with not a single determination having been issued yet.
 
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