Tracker mortgage scandal to cost banks more than €900m, Oireachtas committee hears
The head of the Central Bank has said the tracker mortgage rip-off scandal is set to cost banks and lenders who wronged customers more than €900m.
He explained: “Lenders are counting the cost of this scandal. In addition to the redress and compensation we require them to pay, these institutions are bearing significant administrative costs to conduct the examination in line with our requirements.
“This can be seen in their provisioning statements and their staffing levels. By way of example, the main lenders have now made combined provisions of circa €900 million in respect of the examination, broken down as approximately €600m for redress and compensation and €300m for costs, while one lender recently disclosed that it had up to 500 people working on its redress scheme.