Brendan Burgess
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Various figures have floated around. And it's very hard to estimate the compensation people will get beyond the €3,200.
Jeremy Masding refused to quantify the figure at the press conference yesterday. In the results for Half Year 1 published yesterday, they said "The Group has made a provision for this in its financial statements and the Board considers the level of provision to be appropriate".
However, according to the Irish Times
Mr Noonan said, adding that he understands that PTSB has already made a provision in its accounts for both the cost of the redress, at € 76m, and a potential maximum fine of € 20m.
So that's a total cost of €96m.
A different Irish Times article says:
State-controlled [broken link removed] is facing fines of up to €20 million from the Central Bank and compensation payments to customers of more than €35 million following a “serious failure” in how it managed interest rates on 1,372 mortgage accounts.
Here is my initial estimate
In cases of Loss of Ownership, they are writing off any outstanding debt, but that would have been written off anyway, so I don't see that as an additional cost.
They will be compensating for any uplift in value of the property since loss of ownership occurred. As most were in massive negative equity, the increase would not match the amount already written off, so I doubt that will cost much.
Jeremy Masding refused to quantify the figure at the press conference yesterday. In the results for Half Year 1 published yesterday, they said "The Group has made a provision for this in its financial statements and the Board considers the level of provision to be appropriate".
However, according to the Irish Times
Mr Noonan said, adding that he understands that PTSB has already made a provision in its accounts for both the cost of the redress, at € 76m, and a potential maximum fine of € 20m.
So that's a total cost of €96m.
A different Irish Times article says:
State-controlled [broken link removed] is facing fines of up to €20 million from the Central Bank and compensation payments to customers of more than €35 million following a “serious failure” in how it managed interest rates on 1,372 mortgage accounts.
Here is my initial estimate
In cases of Loss of Ownership, they are writing off any outstanding debt, but that would have been written off anyway, so I don't see that as an additional cost.
They will be compensating for any uplift in value of the property since loss of ownership occurred. As most were in massive negative equity, the increase would not match the amount already written off, so I doubt that will cost much.
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