KBC KBC statement on tracker redress

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LadyHB

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KBC press release

Tracker Mortgage Examination

25 OCTOBER 2017

Statement from KBC Bank Ireland regarding the Central Bank Tracker Mortgage Examination

  • KBC sincerely apologises for the past errors the bank has made and the distress this has caused our impacted customers.
  • 571 tracker mortgage customers were already rectified in 2010.
  • A further 490 customers have been identified as impacted to date, following further consideration and engagement with the Central Bank in relation to Phase 2 of the Tracker Examination.
  • KBC anticipates that up to an additional 200 to 600 cases may be impacted.
  • KBC continues to engage with the Central Bank in relation to the identification of impacted customers.
  • KBC expects to book an impairment (in net other income) in the range of 40 to 60 million EUR in 3Q17.
  • KBC expects to have concluded the identification of the vast majority of customers impacted by the Tracker Examination by year end.
  • Payment of redress and compensation for customers identified so far will commence in early November. KBC will contact each customer individually. For straight forward cases, which we expect to be the majority, we expect to complete payment by year end. For more complex cases involving manual calculations for every individual case, payments will continue into 2018.
KBC fully acknowledges the past errors that occurred in relation to Tracker Mortgages should not have happened, were wrong and we sincerely apologise for this once again.
KBC takes this review very seriously and we recognise that the Examination has taken longer than originally anticipated. It is a lengthy, complex process, involving a review of not only the documentation but also individual customer circumstances. We also understand the desire from all stakeholders to conclude the review as soon as possible and this matter is the top priority for the bank.

In a prior review concluded in 2010, the bank identified 571 customers that would have moved from a fixed rate mortgage to a standard variable rate, but based on a review of their individual circumstances, the bank concluded that these customers should return to a tracker rate following the fixed rate period. These customers had their accounts amended prior to the expiry of the fixed rate period so they then correctly rolled to a tracker product.

Under the current Tracker Examination, the bank has so far identified an additional 490 impacted customers that did not move to a tracker rate after a fixed rate period or were moved off their tracker rate following a change to the terms of their loan or are on the incorrect tracker rate. As part of the ongoing review and within the Tracker Examination, KBC continues to examine tracker mortgage customer files and as a result anticipates that up to an additional 200 to 600 customers may be impacted. KBC expects to have concluded the identification of the vast majority of customers impacted by the Tracker Examination by year end.

KBC has already corrected the rate for a number of customers earlier this year in accordance with the Tracker Mortgage Examination Framework and will continue to do so as cases are identified. Redress and compensation payments will commence in early November 2017.
 

PJDCol

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Still just more numbers to most people. Still not one person knows if they are impacted yet or which type of contracts they are talking about and won't know for weeks by the sound of it.

They also say "for straight forward cases, which we expect to be the majority" - is this not admitting the whole process is not complex???
 

Sligolive

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The Central Bank advised earlier today that the status of accounts must be determined by November with regard to those accounts where KBC is unsure if the accounts are impacted or not impacted. I think this is good news and helps to draw a line under matters.
 

DamC82

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Amazes me how they can be 'unsure' after all this time.
Unsure is code for damage limitation
 

peemac

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According to iib 2006 annual report, they had 60,000 homeloan customers. Whilst they operated a homeloan division from 1989 it was mid nineties that they started pushing it.

I'm guessing that with approx 1.3m mortgages issued from 1993-2006 (cso) that would suggest that iib/kbc had less than 5% share of the market but probably about 7% of 2004-2006 market when they pushed strongly.

Ptsb claim 22% market share in 2006.

Sort of suggests that a figure of 800-1,000 could about right for kbc
 

Leighlinboy

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Padraig initially said kbc could be 2500 if im correct.... at the time the flyer was published . I think the numbers are encouraging from where we were 2 weeks ago .

What id love to know is , is that 400-600 possibles , are these all the remaining ones the CB are fighting for to be included ?

Or is another group of poor souls that will have to go on into new year none the wiser

1000 plus to me sounds like a good few of the 7 cohorts will be getting good news ?
 

peemac

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Another reason I think the figure may be right is that there has been discussion here about kbc for about 8 years.

I've been commenting for same period (had another user name) and I'd say less than 100 different people have commented and said they were affected. So its still wait and see, but with more positivity.
 

peemac

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KBC annual reports are avaialable online - I've worked out that between 2002 & 2006 KBC wrote about 25,000 mortgages

At a guess, about 70% were probably trackers. so about 17,000

How many of us "fools in hindsight" switched to fixed? - would 10% be a rough guess based on other lenders?


Also interesting in their 2006 annual report - they mention trackers, capped trackers, switching trackers and discounted trackers. Not a single mention of any other type of mortgage rate available or offered. Plus plenty of guff about offering their customers the best rates and best options.
 

Leighlinboy

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Good point re number of posters , additionally a lot of us are in roughly the same cohort from following the threads ...so im guessing those who had tracker fixed and moved to prevailing rate/svr account for majority deemed under the review by the bank.
Why cant 490 letters be fired out this morning to say u will be back on rate next payment will reflect it ....would be nice to see someone on these threads post a nice message before the end of the week

....think my best chance is if im one of the 2-600 possibles
 

PJDCol

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Would you believe I spoke to the Tracker Mortgage Team this morning and they didn't even know about the statement released last night.
 

PJDCol

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Maybe if everyone who sees this to also give them a quick call - even though you won't get any sort of answer - but just to give them a kick up the.....

Number is 01 6646983
 

DamC82

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That doesn't surprise me PJ, I went through all my correspondence last night and it was laurel and hardy stuff. The promises of deadlines contradicted, apologies , different staff with different views who hadn't a clue .. farcical stuff...
 

peemac

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Would you believe I spoke to the Tracker Mortgage Team this morning and they didn't even know about the statement released last night.
to be fair, it wasn't released to anyone (probably including staff) until 4.45 and at 9am they were just getting to their desks
 

PJDCol

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So going through the statement and looking at the comments about the 490 impacted customers under the current Tracker Examination. This involves contracts that:

1. "Customers that did not move to a tracker rate after a fixed rate period" - This could be from outset of the mortgage or could relate to the fixed rate document signed a few months later. Still not clear.

2. "Customers moved off their tracker rate following a change to the terms of their loan" - This could mean anything. Again could mean the change in the terms of the loan was the fixed rate document.

3 "Customer on the incorrect tracker rate" - that is clear.

Should probably give us guessing what everything means!!!
 

PJDCol

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Well they released a detailed statement for the first time and told people on the statement to contact the Tracker Mortgage Helpline for more details!
 

demoivre

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Also interesting in their 2006 annual report - they mention trackers, capped trackers, switching trackers and discounted trackers. Not a single mention of any other type of mortgage rate available or offered. Plus plenty of guff about offering their customers the best rates and best options.
I have come across a few people who took out mortgages in 2006 and were put on a "Flexi Annuity rate" , with a fixed rate for the first 3 years. Were they entitled to be offered a tracker mortgage at the end of the fixed period? Two of them are paying 4.25% variable at the moment !
 

peemac

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I have come across a few people who took out mortgages in 2006 and were put on a "Flexi Annuity rate" , with a fixed rate for the first 3 years. Were they entitled to be offered a tracker mortgage at the end of the fixed period? Two of them are paying 4.25% variable at the moment !
couldn't tell you. They should read their loan contract fully - especially the final pages that give the special conditions
 

raglan

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Emailed tracker redress for KBC yesterday morning still waiting a reply. Rang them this morning to ask when impacted people would be notified as their statement said early November....he said by the end of year. I asked by phone or letter....it will be by letter.Anyone else told anything of significance?
 
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