Important Information about PTSB Redress for Tracker Mortgages
At the end of July, the Permanent TSB (PTSB) announced that it was establishing a Mortgage Redress Program to pay compensation for PTSB tracker mortgages to customers that “may have lost an opportunity” to move from a fixed rate mortgage to a tracker mortgage due to failures by the bank.
According to an explanation provided by the PTSB, the bank failed to inform customers of the consequences of breaking from a fixed rate or discounted tracker mortgage early, and it also failed to inform customers of their right to a lower interest tracker rate at the end of a fixed rate period.
The consequences of the bank´s failings were that 1,372 customers paid too much for their mortgage. The PTSB redress for tracker mortgages program is intended to return customers to the position they would have been in if the correct interest rate had been applied from the maturity date of a fixed rate mortgage or a discount tracker period.
The Schedule for Paying Compensation for PTSB Tracker Mortgages
The bank has released details of a three-stage schedule for paying compensation for PTSB tracker mortgages. The stages are:
- PTSB will identify those customers who have been paying too much for their mortgage and place them on the correct interest rate.
- The bank will offer customers the opportunity to move to the tracker rate mortgage they would be eligible for had their failure not occurred.
- The bank will then pay compensation for PTSB tracker mortgages (or reduce a customer´s arrears) based on their calculations of what each customer is due.
PTSB will be writing to each affected customer individually and it is very important that customers respond prior to the 30th September 2015 in order to take advantage of moving to their applicable tracker rate mortgage. The failure to do so will see customer´s account revert to their current interest rate.
Concerns about PTSB Redress for Tracker Mortgages
Concerns exist about the PTSB redress for tracker mortgages due to the bank making its own calculations about how much compensation for PTSB tracker mortgages customers are entitled to. As has been seen in recent banking scandals in the UK, banks can under-calculate how much redress customers are due in order to save themselves millions, and the risk exists that hundreds of customers could be denied their full entitlement of compensation for PTSB tracker mortgages.
Further concerns exist about the “lower” interest rate that is being applied by PTSB to mortgage accounts as part of the PTSB redress for tracker mortgages program. This is a discretionary rate that the bank has chosen to apply if there was no tracker rate specified in the mortgage agreement when customers initially fixed their tracker mortgages. Again there is a risk that customers could continue paying more for their mortgage than they should be.
Seek Legal Advice about Compensation for PTSB Tracker Mortgages
As part of the PTSB redress for tracker mortgages program, the bank is offering customers €400 to pay for independent legal advice. We recommend that customers take full advantage of this offer to ensure that the offer of compensation they receive reflects their full entitlement to compensation for PTSB tracker mortgages, and that the interest rate applied to their mortgage accounts is appropriate.
You are invited to call our 24-hour service for a consultation with a solicitor who is an expert in financial mis-selling. The solicitor will answer any questions you may have about the PTSB redress for tracker mortgages program and advise you of the simple steps that can be taken to ensure that you receive your full entitlement to compensation for PTSB tracker mortgages.
From the experiences of people we have already spoken to, many customers believe that the bank´s offer of compensation for PTSB tracker mortgages is derisory in relation to what they have lost due to the bank´s misconduct. Make sure you are fully informed about your rights by calling our 24-hour service today.