Brendan Burgess
Founder
- Messages
- 52,027
I think it was useful session, despite all the repetition.
Clarification of the Central Bank's powers
The Central Bank does not have the power to direct the banks to redress people before 2013.
They don't have the powers to order compensation at any time.
They do have the power to get information from the banks.
The Central Bank appears to be using its powers sensibly
The banks told the the Central Bank which cohorts were in scope and which were not in scope and not impacted.
The Central Bank challenged this and, in most cases, the Central Bank managed to persuade the banks to change their mind.
So far, two banks are insisting that some cohorts are not in scope and not impacted
This seems perfectly reasonable to me. If the Central Bank says "In our opinion, those customers deserve their trackers back" the banks have the full right to explain their case and to refuse to put them back on trackers if they believe that they are not affected. The Central Bank is not a court and it's not an ombudsman.
In these cases, the Central Bank will be directing the banks to write to all the customers in those cohorts to tell them of their decision and that they have the right to go to the Ombudsman or to the courts. Again, perfectly reasonable.
They have reached decision time with these two banks
They have been asked to come back with a final answer before the end of October. At that stage, the Central Bank can do no more.
This is the correct procedure. Personally, I would not trust the Central Bank's judgement on this. I would have more faith in the courts or the Ombudsman.
This process has to be fair to both sides - the borrower and the lender. Just because someone lost their tracker does not mean that they lost it incorrectly.
Clarification of the Central Bank's powers
The Central Bank does not have the power to direct the banks to redress people before 2013.
They don't have the powers to order compensation at any time.
They do have the power to get information from the banks.
The Central Bank appears to be using its powers sensibly
The banks told the the Central Bank which cohorts were in scope and which were not in scope and not impacted.
The Central Bank challenged this and, in most cases, the Central Bank managed to persuade the banks to change their mind.
So far, two banks are insisting that some cohorts are not in scope and not impacted
This seems perfectly reasonable to me. If the Central Bank says "In our opinion, those customers deserve their trackers back" the banks have the full right to explain their case and to refuse to put them back on trackers if they believe that they are not affected. The Central Bank is not a court and it's not an ombudsman.
In these cases, the Central Bank will be directing the banks to write to all the customers in those cohorts to tell them of their decision and that they have the right to go to the Ombudsman or to the courts. Again, perfectly reasonable.
They have reached decision time with these two banks
They have been asked to come back with a final answer before the end of October. At that stage, the Central Bank can do no more.
This is the correct procedure. Personally, I would not trust the Central Bank's judgement on this. I would have more faith in the courts or the Ombudsman.
This process has to be fair to both sides - the borrower and the lender. Just because someone lost their tracker does not mean that they lost it incorrectly.
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