****PRESS RELEASE AND ATTACHED DOCUMENT UNDER STRICT EMBARGO UNTIL 1 P.M.**** https://www.centralbank.ie/docs/def...gage-examination---february-2019.pdf?sfvrsn=4 4 February 2019 €647 million paid to affected customers - Central Bank Tracker Mortgage Examination Redress and compensation payments now largely complete with €647 million paid out by lenders at end-December, an increase of €67 million since end-August Number of affected customers stood at 39,800 at end-December, an increase of 1,400 since end-August 2018 97 per cent of verified affected customers have received their redress and compensation at end December 2018 The Central Bank has published the penultimate update on the Tracker Mortgage Examination, showing that, at end-2018, lenders had paid out €647 million to customers affected by their failings. This is an increase of €67 million since end-August. The update also showed that an additional 1,400 affected customers have been included by lenders for redress and compensation since end-August. This brings the total number of affected accounts at end-2018 to 39,800. 97 per cent of affected customer accounts already identified and verified have now received offers of redress and compensation. The supervisory phases of the Examination are nearing completion, with the final report expected to be published in the coming months. The Central Bank will continue to challenge all lenders until it is satisfied that all groups of affected customers have been identified. While the vast majority of affected customers have been identified, this continuing supervisory work may result in the identification of some additional affected customers before the Examination is concluded. Enforcement investigations are being conducted in parallel with the Central Bank’s supervisory work. As enforcement investigations are at different stages, they will conclude on different timelines; however, it is expected that some will conclude this year. Derville Rowland, Director General Financial Conduct, said: “The extensive, intrusive and complex work we’ve undertaken throughout the Examination has always been about ensuring that lenders identify, redress and compensate affected customers for the wrong which they caused. The vast majority of affected customers have now been identified and paid, with €647 million in redress and compensation paid out at end-December. As the supervisory phase of the Examination is nearing completion, we will continue robustly to challenge the work lenders are doing in identifying, redressing and compensating those customers affected. The Examination has revealed the unacceptable damage that misconduct can cause to consumers up to and including the loss of their homes and properties in some cases. The Central Bank’s strategic commitment is to elevate the regulation of the behaviour of firms and the operation of financial markets in order to protect consumers. The Examination was structured to give priority to ensuring affected customers received the redress and compensation payments which they were owed. However, our work will continue through the ongoing enforcement investigations.” ENDS Notes The €647 million paid out by lenders to end-December includes €47 million paid out outside of the Tracker Mortgage Examination. The figure of 39,800 affected is an aggregate figure including c.32,700 affected customer accounts accepted by lenders to date as part of the Examination as well as c.7,100 tracker mortgage cases remediated following Central Bank intervention outside of the Examination. Through these enforcement investigations, which span lengthy time periods, the Central Bank is seeking to establish the circumstances in which customers lost their trackers and how lenders dealt with tracker mortgage issues as they became aware of them. The enforcement investigations are also examining whether the documentation, which customers received from lenders, was clear and what key decisions lenders took (or omitted to take) which resulted in customers losing their trackers or being on the incorrect rate.