Bank of Ireland Update on Bank of Ireland staff who lost trackers

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Tracks123

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I received an update from ? to say that all the 1800/2000 staff mortgages are now within the "scope" of the investigation .I expect all of these accounts to be re instated back to their original contracts ie tracker.So the Sunday Times piece is correct.I also understand that the new Ceo is anxious to resolve this immediately but the main concern within the bank is how do you compensate people for the overcharging and how do you calculate redress.Without doubt a case will be taken to the courts once the bank admit their wrongdoing.It would appear to me that the new Ceo is intent on changing the culture and the public perception of Bank of Ireland .The tracker fiasco gives her that opportunity.
Expect to see some high profile departures from the senior management and board in the immediate short term.
 

Sarenco

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I received an update from ? to say that all the 1800/2000 staff mortgages are now within the "scope" of the investigation.
I see.

As I understand it, an "in scope" mortgage for the purposes of this review process is any PPR or BTL mortgage:-
  • That originated on a tracker;
  • That had a tracker rate applied at any stage during the term of the underlying mortgage agreements; or
  • Where the underlying mortgage agreements provided for contractual rights or options for a tracker rate at any stage during the term of the agreements.
The BOI staff mortgages that we are discussing here were obviously originated as trackers so I don't see how anybody could ever have argued that they were not "in scope".

Whether or not they are "impacted" (to use the Central Bank's phrase) is obviously an entirely different matter.

If the Sunday Time piece is simply confirming that these mortgages are "in scope", then that seems to be a bit of a non-story. No?
 

ryflava

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I spoke with someone in BOI just a few mins ago & he said they had just been informed that letters are to be sent out tmrw, to impacted customers?? I don't believe him to be honest, but will live in hope that I'm wrong
 

Linten

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The 'in scope' relates to in scope for compensation.

Finally good news for a lot of people, late in the day but better late than never!!
 

LadyHB

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What a leap...6,000 additional impacted customers. That's a huge figure even allowing for the 2k staff members. An additional €175million provision (average of 30k per customer). I assume they've rolled over and accepted all CB impacted cohorts. Fantastic news. Sets the bar for the remaining lenders.
 

Onceagain

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Agreed without Padraig none of this was possible, especially the negative response we have received by so many departments and on here for many many years. It's been a very tough journey. But it has to be acknowledged without Padraic and his team in Nutgrove, none of this would have happened. Isn't that unbelievable that in 2017, without him we would still be talking to the wall.
 

Tracks123

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looks like things are moving pretty fast here.Wouldnt be getting caught up in language or MFAs .Bottom line here new Ceo wants to write the checks and consign this mess to the previous management.
Good move on her behalf as you cant buy this type of PR
 

LadyHB

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Full text of Press Release

09 November 2017



BANK OF IRELAND SETS OUT PATH FOR RESOLUTION OF TRACKER MORTGAGE ISSUE
Compensation process is commencing for impacted customers


Francesca McDonagh: “I believe that the way in which we address this issue will define the customer centric culture we aspire to at Bank of Ireland and this is why I have made resolving this issue my personal priority since joining the Bank.”

Thursday, 09 November: Bank of Ireland has today set out a clear path for the resolution of the tracker mortgage issue for impacted Bank of Ireland customers.

Over the past two week period substantial progress has been made. As required by the Central Bank, the Bank has continued to review whether further customers should be included in the compensation process. The Bank is now working to ensure that compensation payments are made as swiftly as possible to all impacted customers.

  • Compensation process for previously identified impacted customers: The commencement of the compensation process has been a key priority. Approximately 4,300 customers will shortly be written to by the Bank with an offer of compensation. These letters will also set out the range of options which are open to customers and the Bank aims to compensate all of these customers, subject to their agreement, by the end of this year.
  • Additional impacted customers: It is the Group’s objective to fully resolve the Tracker Mortgage Examination Review, and to take an approach which seeks to respect our legal and contractual commitments and also ensure fair outcomes are achieved for our customers, consistent with the customer centric culture the Group aspires to. On this basis, the Group has therefore agreed to include an additional c. 6,000 accounts within the scope of the compensation scheme. The Group will ensure that all impacted customers who continue to have an open mortgage account will be returned to their correct tracker rate as soon as possible, and aims to compensate all these customers, subject to their agreement, as quickly as possible, starting before the end of 2017.
Francesca McDonagh, Group Chief Executive, Bank of Ireland, said:

“Since taking up the role of CEO at Bank of Ireland in October, making progress on the tracker issue has been a top priority. We have since made substantial progress in relation to the issue.

“The bank is also confirming today that c.6,000 additional customers will be part of the compensation scheme. This now gives us a clear picture of the number of impacted customers. The compensation process is commencing, and our priority is to ensure that all impacted customers are compensated as quickly as possible.

“I believe that the way in which we address this issue will define the customer centric culture we aspire to at Bank of Ireland and this is why I have made resolving this issue my personal priority since joining the Bank.

“I unreservedly apologise to all impacted customers for the financial loss and anxiety this has caused them and their families.”
 

Stitcher

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Great news. Hopefully this sets the tone for other banks. I hope to see a similar announcement from PTSB.
I hope too that it's coming on foot of recommendations from the CB review process and not just the new CEO.
And enormous praise too to Padraic Kissane, without whom we would not have got this far.
 

CocoSparrow

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"Impacted customers who continue to have an open mortgage account"

How can they exclude customers who have since closed their mortgage accounts, surely that's not fair?? Some would have had to see because they couldn't afford to keep repayments going???
 

ThomasP

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On Thursday 21 September, Liam McLoughlin & Stephen Mason told a series of blatant lies and bare faced untruths to the Meeting of the Joint Committee on Finance - look at the Oireachtas website, Committee Playback, on that date, from about 38.00 onwards. What, I wonder, will be the consequence of this? I, for one, will be pursuing this matter through my TD and would urge others to do likewise.
 

Mollie28

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Hi @Hopeful7 they’re being very vague on what constitutes in scope/impacted. I’m sure at this stage there has to be a defining criteria set but they are not divulging any of it or how they are determining if you’re impacted. All
They are saying is wait to see if you get a letter. You can ring the tracker investigation unit and they can tell you whether your account is in the tranche of letters about to dispatch but then they qualify it by saying that doesn’t mean you won’t be in future tranches.
 

Sarenco

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I think the new identified batch that were on a tracker at some stage are in scope , think I'm clinging to straws
That seems like an entirely arbitrary distinction to me.

I personally think the lack of transparency in this whole process is extraordinary. The whole thing is playing out like a back room deal, with random winners and losers.
 
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