Bank of Ireland has claimed that fewer than 9,400 customers have been affected as a result of the tracker mortgage scandal, despite indicating previously that the figure was higher.
Francesca McDonagh, chief executive of the bank, told the Oireachtas finance committee last night that 9,400 customer accounts had been identified as having been affected by being denied a tracker mortgage or being charged the incorrect rate.
The number of customers caught up in the scandal was lower than the number of customer accounts, bank officials added.
Michael McGrath, the Fianna Fáil TD, criticised the bank for causing confusion by referring to customers and customer accounts interchangeably when speaking about the issue.
Previous estimates of the number of affected customers had indicated that the total was about 10,300. Furthermore, in its December update the bank said that it had paid or made a written offer of redress and compensation to 9,867 customers. It now claims that there are at least 467 fewer customers than that figure.
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John O’Beirne, head of product at Bank of Ireland, said that the number of customer accounts had been reduced for reasons including instances of duplication. In other cases, the error made on a customer’s account had been rectified within 30 days and as such no redress or compensation was due.
The number of customers who lost their home as a result of the scandal has risen from four to 14, Ms McDonagh said. Of these, six were family homes of which one was still in the bank’s possession. Ms McDonagh said that the previous owner of the home could have it back if they wished.
Bank of Ireland has contacted 90 per cent of affected customers and paid €65 million in redress and compensation so far. Offers totalling €109 million have been made to borrowers, Ms McDonagh said. The largest single payout to date was €363,000. The bank expected the total cost to the bank to be within the €175 million to €200 million provision it set aside late last year, she said.
Ms McDonagh, who took up her role as chief executive in October, said that she had been given a “very strong mandate” from the Bank of Ireland board to take a fresh look at the tracker issue when she joined. She said she regretted how customers had been treated by the bank and gave a “firm commitment” that the lender would learn from the scandal.