KBC KBC before the Finance Committee on 6th February


Frequent Poster
Thanks Brendan

Hopefully they will give concise breakdown of how many redressed , yet to be contacted , and dates for conclusion , AIB have a lot yet to do. Guessing Kbc are similar albeit much smaller loan book .


Registered User
There’s an interesting article online by Charlie Weston , based on a questionnaire filled out by KBC prior to the Commitee meeting.
I can post the link if that’s okay with Brendan ?
Mentions reposessions/ numbers compensated and slow rate of redress.


Frequent Poster
KBC on late in the day , lets hope there a
Significant improvement on previous performances . Mailed the tds my questions hope they are followed up, still lots of people deemed not impacted with no explanation given by bank .


Frequent Poster
Mailed the TD's and asked them to follow up for me , the fixed form referenced the company's standard variable rate, but I thought that was the whole premise of the investigation . I thought they would at least give me something different than the response I got in 2012 when I first complained. See what today brings anyway.


Frequent Poster
Winding up. John McGuinness is giving PTSB a roasting in his summation as the chair of the finance committee. KBC I reckon about 730pm.

Brendan Burgess

Wim Verbraeken
Barry D'Arcy chief risk officer
Dara Deering - Exxec dire retail banking

417 mortgage accounts idendified in October , redress and full payments made
Following the CB engagement
2,557 were identified
1907 up to July 2008 fixed and rolled onto SVR - docuentatio nnot clear
650 PDH identified to new mortgages issued 11/06 to Feb/2008 who fixed - the bank has decided to offer them a tracker

2974 in total
All have been written to with status update by end of March, if review not complete.

501 accounts redressed
All will be restored by end Feb 2018 and will recieve redress by end of June

€120m provision made.

Some customers have lost their homes or investments
6 homes; 27 investments
We expect these numbers to increase when determining causation.

Our causation is as customer focused

We ask: "Could the customer under the most lenient approach circumstances, have kept the property?"

Brendan Burgess

Pearse Doherty
Is there a culture problem in the bank?

Wim: There were unacceptable practices which would not meet today's standards.
But there were no deliberate efforts to deprive customers of trackers

Pearse: Did the bank break the law?

Wim: I have seen no evidence of that.
Contractual rights were broken.

Wim : We had 40 cases with the FSO. He upheld 38 of them saying that the documentation was clear and unambiguous. c 2010/2011

Pearse: Was it discussed at board level?

Wim: I don't think it was discussed at executive management level

Pearse: Why has it taken you so long to put people back on the right rate? You are the slowest.

Wim: The customers were only determined as impacted in December.
We wrote to them at the beginning of January

We identified 100 cases initially - the CB challenged us and brought up the number. There is now no further dispute with the CB

We had won 38 out of 40 successful cases with the FSO.
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Brendan Burgess

Pearse: 650 PDH identified to new mortgages issued 11/06 to Feb/2008 who fixed - the bank has decided to offer them a tracker
Can you explain these dates.

Here is one case: Aug 2006 applied. Finalised Jan 2007 - then we decided to fix. But we are not impacted.

Wim: We welcome all customers who have evidence we don't have to come forwards.

New owner occuipied that applied 11/2006 and 2/2008 because we had issued a flyer to brokers for a product which was specific to starting on a fixed rate and rolling onto a tracker. if they signed a loan agreement starting on a fixed rate rolling onto an SVR, should have been given rolling onto tracker.

6,000 cases originated through the brokers rolled onto a tracker.
the 650 signed a roll onto SVR, but we are giving them the tracker.

Why is the Feb 2008 there. Because we told the brokers in feb 2008 that it no longer applied. We allow for the application date.

Pearse: What about those who applied before 11/2006 but got the communication before they chose.
Wim: They were not influenced by the broker's flyer.
Pearse: They did not make a final decision until they drew it down
Wim: We made a policy decision based on the date of application, but we welcome any evidence from people who have information specific to their own journey.

Pearse: If the broker tells you that you are going to roll onto a tracker, that would be part of the decision.
Wim: We have agreed this position with the Central Bank. The date of application is the fair approach.

Brendan Burgess

Michael McGrath

Just to tease that out a bit further...

The relevance of those dates is a flyer?

Wim:Yes. Revoked 11/2; issued 7/11 /2006

McGrath: Their contract made no reference to a contract?

Dara: Correct.

McGrath - one customer met broker in Feb 2008 and showed them the flyer. They signed in May 2008 ; The flyer was pivotal to our decision.

April 2008 we pulled trackers for new customers.
July 2008 for existing customers

We will look at cases around the edges.

Another drew down their mortgage in feb 2008.
At the other end, the application was made in Sept 2006 - they are making the point until fully signed and the mortgage was executed. So they have an arguable case.

Dara: They got an offer saying they were going fixed to SVR

over 90% of the business came through the broker network.

McGrath: I can see why you have drawn the line, but it's unfair on those who applied post feb 2008 , but who relied on the flyer.

Wim: The brokers are professional.

Dara: Anyone deemed not impacted can go to the bank directly. Please send on any cases to us.