Public statement relating to Settlement Agreement between the Central Bank of Ireland and Ulster Bank Ireland DAC

Date25 March 2021
The Central Bank of Ireland
Ulster Bank Ireland DAC
Ulster Bank Ireland DAC reprimanded and fined €37,774,520 by the Central Bank of Ireland for
regulatory breaches affecting tracker customers
On 23 March 2021 the Central Bank of Ireland (the “Central Bank”) reprimanded and fined Ulster
Bank Ireland DAC (”UBID” or the “Firm”) €37,774,520 pursuant to its Administrative Sanctions
Procedure (“ASP”) in respect of UBID’s serious failings in the treatment of its tracker customers
holding 5,940 mortgage accounts between August 2004 and April 2020.
The Central Bank’s investigation found that UBID breached its regulatory obligations towards its
impacted tracker customers, most notably those under the Consumer Protection Codes 2006 and
2012. UBID has admitted in full to 49 separate regulatory breaches. The fine and reprimand
imposed is in addition to the more than €128,000,000 that UBID has been required to pay to date
in redress, compensation and account balance adjustments to all impacted customers as part of
the Central Bank’s Tracker Mortgage Examination (“TME”). The TME was established as an
industry-wide review in 2015 by the Central Bank to ensure that lenders were providing tracker
customers with their tracker mortgage entitlements and to address any circumstances in which
they were not.
The Central Bank determined that the appropriate fine was 53,963,600, which was reduced by
30% to 37,774,520 in accordance with the settlement discount scheme provided for in the
Central Bank’s ASP. This fine reflects the gravity with which the Central Bank views UBID’s failings.
UBID caused unacceptable and avoidable harm to its impacted tracker customers; from extended
periods of significant overcharging to the loss of 43 properties, 29 of which were family homes.
The investigation established that UBID failed to adequately protect the rights of those customers
1. were on tracker rates when UBID withdrew its tracker mortgage product offering and
subsequently requested to fix their rates;
2. had a tracker mortgage entitlement in their terms and conditions; or
3. had a legitimate expectation that they were entitled to a tracker mortgage based on their
loan documents.
The result of such failings by UBID was that customers suffered significant detriment.

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