Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Top Stories

Ireland’s AIB fined record 97 million euros for mortgage overcharging

2022 06 23T101914Z 1 LYNXMPEI5M0DZ RTROPTP 4 HEALTH CORONAVIRUS IRELAND - Global Banking | Finance

DUBLIN (Reuters) -Ireland’s AIB and its EBS subsidiary have been fined a record 96.7 million euros ($101.6 million) by the country’s central bank for overcharging customers denied mortgages that track base rates.

The fine was more than twice the highest previous penalty levied on any institution and brought to 178 million euros the amount all lenders have so far been fined for failing to offer a mortgage that tracked the European Central Bank rate that has been at or close to zero for almost a decade.

AIB, which had set aside 70 million euros by the end of 2021 to cover a potential fine, said it would include an additional charge in its 2022 accounts. It apologised “unreservedly” for the impact its breaches had on customers’ lives.

Irish banks have also paid out around 730 million euros to compensate some 40,000 borrowers denied the product that was widely offered during the housing boom in the mid 2000s and withdrawn for new customers when the financial crisis hit.

When banks withdrew the tracker products for new customers, they failed to offer a tracker rate to its existing customers who had contractual entitlements allowing them to a return to a tracker rate in their mortgage agreements.

Of the 12,845 individuals impacted by the failings, 53 AIB customers lost their properties as a result being unable to meet their mortgage repayments. A further 84 EBS customers lost their properties, despite it being a much smaller institution.

“The consequences of the prolonged failings were serious and included significant financial strain and distress for those affected and their families,” Irish Central Bank Director of Enforcement Seána Cunningham, said in a statement.

NatWest’s Irish unit, Ulster Bank, was fined 37.8 million euros over the same issue last year, with local lender permanent tsb and Belgian financial group KBC fined 21 million euro and 18.3 million euro respectively.

A former subprime unit of permanent tsb, Springboard Mortgages, also received a 4.5 million euro penalty after the central bank launched a probe into the overcharging in 2015.

Bank of Ireland, the country’s largest lender by assets, remains under investigation by the regulator over the issue.

($1 = 0.9518 euros)

(Reporting by Padraic HalpinEditing by David Goodman and Alison Williams)

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post