PTSB ANNOUNCES COMPENSATION PROGRAMME FOR 1,400 MORTGAGE HOLDERS
Permanent TSB has been ordered to compensate over 1,300 mortgage holders who suffered ‘serious failures’ on their accounts.
The Central Bank says the bank failed to explain the impact of moving from fixed rate or discounted tracker period and applied incorrect interest rates to ‘Springboard’ mortgages.
It says the customers suffered consequences including overpayments, arrears, legal proceedings and in 22 cases the loss of their property.
Business editor Vincent Wall says the total cost of the compensation scheme is not yet known.
“They will also get some compensation but they have until November to make a decision about that – they also have a right to appeal if they don’t think it’s generous enough or not sufficient compensation” he said.
“Obviously we won’t know the final price until all that process has gone through in November”.
“But there has been some suggestion that there could be an average of perhaps about 25,000 euro in compensation to these people” he added.