Ombudsman's statistics on tracker cases

[Brendan Burgess]

This is from the https://www.fspo.ie/documents/Overview_of_Complaints_2020-v1.pdf for 2020

I have compiled the table from the data.

Tracker mortgage related complaints Complaints identified as tracker mortgage interest rate related complaints continued to comprise a considerable element of the work of this Office in 2020, with 582 tracker mortgage complaints closed during the year. Of these, 273 were closed following mediation by the Dispute Resolution
Service and 120 of these complaints were closed following investigation and the issuing of a legally
binding decision. The remainder were closed at various stages of the process.

One bank ( BB: Danske) appealed to the High Court seeking to strike-down a tracker mortgage decision I issued in April 2020. In that decision I directed the bank to reinstate the complainants’ tracker mortgage interest rate. The High Court delivered its judgment in February 2021. The bank was refused the reliefs it had sought and was unsuccessful in all arguments. Therefore, my legally binding decision stands and the bank is required to restore the complainants’ tracker mortgage arrangement.

...
During 2020, we received an additional 492 tracker mortgage complaints. Therefore, tracker mortgage complaints will continue to comprise a considerable element of the work of this Office for some time to come. At the end of 2020, we had more than 1,200 tracker mortgage complaints on hand.

 

[Brendan Burgess]

I published a Digest of Decisions in 2020 dealing specifically with tracker mortgage decisions (Digest Volume 3). This is
available on our website with the other four Digests of Decisions. Our Database of Decisions now contains more than 1,000
decisions in relation to complaints against financial service providers, including tracker mortgage decisions.

It can be seen from the tracker related decisions published that a significant number of tracker mortgage complaints continue not to be upheld. Some complainants continue to have unrealistic expectations, believing that simply desiring to have a tracker interest rate, or knowing
someone who got a tracker interest rate at the same time they took out their mortgage, provides a basis for requiring their bank to
grant them a tracker interest rate. This is not the case.

Further details in relation to tracker mortgage related complaints are set out on page 15.

Page 15


Tracker Mortgage Related Complaints
In 2020, complaints identified as relating to a tracker mortgage interest rate continued to comprise a considerable amount of the work of
the FSPO, with 582 tracker mortgage complaints closed during the year.

It can be seen from the tracker related decisions published that a significant number of tracker mortgage complaints continue to
be not upheld. Some complainants continue to have unrealistic expectations, believing that their desire to have a tracker interest
rate provides a basis for requiring their bank to grant them one.

Of these 582 complaints, 273 were closed following mediation by the Dispute Resolution Service. 120 of these complaints were closed
following investigation and the issuing of a legally binding decision. The remainder were closed across the other processes within the FSPO;
15 within Customer Operations and Information Management,
113 within Investigations and Legal Services without a legally binding decision and
61 in Registration & Assessment.

• Some of the unsuccessful arguments put forward by complainants in relation to tracker mortgages include:
• I have a constitutional right to a tracker mortgage
• My business partner was offered a tracker mortgage
• I would like to have a tracker mortgage but one was never offered to me
• The bank never told me it was withdrawing tracker interest rates from the market generally. If the bank had told me it was doing this, I would have asked for a tracker interest rate at the time

 

[SaySomething]

That table is really helpful thanks Brendan.
It seems to suggest that Tracker Cases can expect to be at least 2 years with the Ombudsman before a final decision is reached.

 

[B26354]

What does the “closed at other stage” refer to? It would seem like a high number of complainants to concede and “close” considering it’s at no cost to continue with complaint. Correct me if I’m wrong on these numbers but of 1290 cases 189 were “closed” so 15% possibly of complaints conceded by the banks?

 

[Brendan Burgess]

What does the “closed at other stage” refer to?

15 within Customer Operations and Information Management,
113 within Investigations and Legal Services without a legally binding decision and
61 in Registration & Assessment.

Registration and Assessment suggests that these were not valid complaints. Duplicates, already settled and tried to reopen, etc.

Customer Operations and Information Management sounds as if they customer did not respond to requests for further information and so the file was closed. That sound like a very small number though.

So maybe that is Investigations and Legal Services?

 

[Brendan Burgess]

OK, I had a look at the report and these categories are explained from Page 16. But I still can't follow them. There seems to be a lot of overlap.

But to be fair it's not that clear cut. If someone lodges a complaint and it goes to investigation and the lender makes a settlement offer early on, where do you classify that?

I would like to see a figure for "Customer didn't follow through" but that is not there, or if it is, I can't find it.

 

[SaySomething]

61 in Registration & Assessment would include the following:
Resolved at the independent appeals panel stage and deemed ineligible.
Complaints which are subject to legal action and ineligible.
Withdrawn by customers at registration stage (not signing forms or providing further information).
@Brendan Burgess there has to be a classification for 'early settlement' because they are definitely measuring them!