Brendan Burgess
Founder
- Messages
- 52,045
Padraic Kissane and I met with ptsb on Tuesday to get clarification of a few issues on the redress programme.
The current scheme will not be changed. However, the Appeals Panels may make systematic directions. For example, if they find the ECB +3.25% rate excessive, they could cut it which would effectively create a precedent for all appeals.
No error has been made on the treatment of split mortgages, as far as they are concerned (However Padraic Kissane voiced his view that many of the Split Mortgages would not have been required if the error had not occurred but this will also be part of an appeal at a later date). Some borrowers may no longer require a split mortgage based on their revised circumstances and can request to be put back where they would have been before the split. All cases on a split mortgage will be reviewed by ptsb as part of the normal three year review period or sooner through engagement between ptsb and the customer.
Where people have asked for calculations, they will be sent out in the coming days. While the interest will be calculated daily, people will get a month by month statement so it will be easy to check.
The Enforcement Investigation is separate from the Redress Programme. The Enforcement may result in fines, but it won’t change the Redress Programme
Everyone should send back their payment instructions as soon as possible. This does not affect their right to appeal in any way through appeal, legal or any other form of discussion.
Borrowers who have lost their property and who have been in legal proceedings (The Independent Appeals Panel)
Each one has a case manager and most have been contacted and met at this stage.
The Customer Appeals Panel (Cases which have not been in legal proceedings or loss of ownership)
The Customer Appeals Panel is awaiting approval from the Central Bank. Ptsb has nominated the members.
It will be completely independent. While the bank will have one representative on the CAP, decisions can be taken by the majority (the other two independent members) and the bank representative will not be Chairman. Ptsb will not make suggestions about how they do their work.
As far as the bank is concerned, BB and PK are free to contact the CAP and make submissions to them about how they might approach collective issues.
How the overcharge is calculated
The overcharge is calculated from the day the fixed rate was due to expire. No adjustment is made for the period from the break to the due expiry date. Some of the calculations are based on a margin which many customers will challenge as incorrect.
Ptsb developed the calculation system to work out the overcharging and refunds. KPMG provided independent oversight of the calculator and the inputs in parallel.
The ECB +3.25% issue
Padraig Kissane highlighted this as one of the most important aspects of the process and it is the source of a lot of the frustration for those affected We said that there is no point in having multiple appeals made on this issue and hearing each one separately. Someone should have the resources to make a good case on behalf of everyone. That way, professional help such as a Senior Counsel could be employed. Of course, individuals have a right to appeal immediately if they so wish and need not associate with any collective submission.
We are free to make such a submission to the Customer Appeals Panel.
Ptsb pointed out that they will vigorously defend any such appeal as the 3.25% rate is a contractual rate.
People who have switched lenders
Where people have moved lenders, ptsb will look favourably on taking them back. They can’t give an undertaking to take them all back as it will depend on individual circumstances e.g. where someone has borrowed more money or affordability has changed. People in this situation should also consider making an appeal to the Customer Appeal Panel rather than to the bank’s normal customer complaints department.
People outside the Redress Scheme e.g. those who did not break out early
They will use the ordinary complaints procedure of ptsb with recourse to the Ombudsman or High Court if they are not happy with the response. It is important to note the time issues relating to 6 years will apply here .
The current scheme will not be changed. However, the Appeals Panels may make systematic directions. For example, if they find the ECB +3.25% rate excessive, they could cut it which would effectively create a precedent for all appeals.
No error has been made on the treatment of split mortgages, as far as they are concerned (However Padraic Kissane voiced his view that many of the Split Mortgages would not have been required if the error had not occurred but this will also be part of an appeal at a later date). Some borrowers may no longer require a split mortgage based on their revised circumstances and can request to be put back where they would have been before the split. All cases on a split mortgage will be reviewed by ptsb as part of the normal three year review period or sooner through engagement between ptsb and the customer.
Where people have asked for calculations, they will be sent out in the coming days. While the interest will be calculated daily, people will get a month by month statement so it will be easy to check.
The Enforcement Investigation is separate from the Redress Programme. The Enforcement may result in fines, but it won’t change the Redress Programme
Everyone should send back their payment instructions as soon as possible. This does not affect their right to appeal in any way through appeal, legal or any other form of discussion.
Borrowers who have lost their property and who have been in legal proceedings (The Independent Appeals Panel)
Each one has a case manager and most have been contacted and met at this stage.
The Customer Appeals Panel (Cases which have not been in legal proceedings or loss of ownership)
The Customer Appeals Panel is awaiting approval from the Central Bank. Ptsb has nominated the members.
It will be completely independent. While the bank will have one representative on the CAP, decisions can be taken by the majority (the other two independent members) and the bank representative will not be Chairman. Ptsb will not make suggestions about how they do their work.
As far as the bank is concerned, BB and PK are free to contact the CAP and make submissions to them about how they might approach collective issues.
How the overcharge is calculated
The overcharge is calculated from the day the fixed rate was due to expire. No adjustment is made for the period from the break to the due expiry date. Some of the calculations are based on a margin which many customers will challenge as incorrect.
Ptsb developed the calculation system to work out the overcharging and refunds. KPMG provided independent oversight of the calculator and the inputs in parallel.
The ECB +3.25% issue
Padraig Kissane highlighted this as one of the most important aspects of the process and it is the source of a lot of the frustration for those affected We said that there is no point in having multiple appeals made on this issue and hearing each one separately. Someone should have the resources to make a good case on behalf of everyone. That way, professional help such as a Senior Counsel could be employed. Of course, individuals have a right to appeal immediately if they so wish and need not associate with any collective submission.
We are free to make such a submission to the Customer Appeals Panel.
Ptsb pointed out that they will vigorously defend any such appeal as the 3.25% rate is a contractual rate.
People who have switched lenders
Where people have moved lenders, ptsb will look favourably on taking them back. They can’t give an undertaking to take them all back as it will depend on individual circumstances e.g. where someone has borrowed more money or affordability has changed. People in this situation should also consider making an appeal to the Customer Appeal Panel rather than to the bank’s normal customer complaints department.
People outside the Redress Scheme e.g. those who did not break out early
They will use the ordinary complaints procedure of ptsb with recourse to the Ombudsman or High Court if they are not happy with the response. It is important to note the time issues relating to 6 years will apply here .
Last edited: