Tracker Mortgage Decision Reference 2025-0218

• Case Outcome: Partially upheld
• Year: 2025
• Reference: 2025-0218
• Date: 22 December 2025
• Subject Matter: Tracker Mortgage
• Finantial Sector: Banking
• Conducts Complained Of: Failure to offer appropriate compensation or redress CBI Examination

Decision Ref:

2025-0218

Sector:

Banking

Product / Service:

Tracker Mortgage

Conduct(s) complained of:

Failure to offer appropriate compensation or

redress CBI Examination

Outcome:

Partially Upheld

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

Background

This complaint relates to six mortgage loan accounts held by the Complainants with the

Provider.

1. Mortgage loan account ending 6053

Mortgage loan account ending 6053 drew down on 29 May 2003 for an amount of

€223,000.00 over a term of 20 years. The Letter of Offer dated 20 March 2003 provided

for a variable interest rate. This mortgage loan account was closed on 08 April 2015.

The Complainants’ mortgage loan account ending 6053 was considered by the Provider as

part of the Central Bank of Ireland directed Tracker Mortgage Examination (the

“Examination”). The Provider identified that a failure had occurred on the mortgage loan

account and as such the mortgage loan account was deemed to be impacted under that

Examination.

The Provider wrote to the Complainants on 23 May 2018 as follows:

- 2 -

/Cont’d…

“[The Provider] has established that at a point in the past, we charged too high a

rate of interest on mortgage loan account [ending 6053], a failure on our part that

we deeply regret and for which we sincerely apologise”.

The Provider’s letter dated 23 May 2018 detailed that the Complainants were due to

receive redress and compensation of €22,566.95. The letter also detailed that the Provider

would write to the Complainants again within four months and provide them with an

explanation of the circumstances that caused the failure to happen on their mortgage loan

account and a breakdown of the redress and compensation payment including a detailed

financial summary.

The Provider wrote to the Complainants again on 13 August 2018 as follows:

“What are the circumstances that caused this failure to happen?

You switched the rate from a tracker to a fixed rate. The version of your terms and

conditions did not give you the option to go back on your tracker when this fixed

rate expired. We now accept that other information, provided to you by us, may

have given you an expectation that you could go back on onto your tracker when

the fixed rate expired.

…

What does this mean for you?

Now that we have completed the detailed review of your mortgage account we can

now show how we calculated the total redress and compensation payment. This is

from 28/11/2008, the date the account was first impacted”.

The Provider’s letter dated 13 August 2018 outlined the breakdown of the redress and

compensation payment as follows:

(1) Redress of €20,420.42 which includes €18,891.95 being the amount overpaid

while on the incorrect interest rate and a Time Value of Money (“TVM”)

payment of €1,528.47;

(2) Compensation of €1,531.53 for the Provider’s failure on the impacted mortgage

loan account; and

(3) Independent Professional Advice payment of €615.00

2. Mortgage loan account ending 5004

- 3 -

/Cont’d…

Mortgage loan account ending 5004 drew down on 24 July 2003 for an amount of

€93,000.00 over a term of 14 years. The Letter of Offer dated 24 March 2003 details that

the applicable interest rate was a variable interest rate. This mortgage loan account was

closed on 08 April 2015.

The Complainants’ mortgage loan account ending 5004 was considered by the Provider as

part of the Examination. The Provider identified that a failure had occurred on the

mortgage loan account and therefore the mortgage loan account was deemed to be

impacted under that Examination.

The Provider wrote to the Complainants on 23 May 2018 as follows:

“[The Provider has] established that at a point in the past, we charged too high a

rate of interest on mortgage loan account [ending 5004], a failure on our part that

we deeply regret and for which we sincerely apologise”.

The Provider’s letter dated 23 May 2018 detailed that the Complainants were due to

receive redress and compensation of €6,961.90. The letter also detailed that the Provider

would write to the Complainants again within four months and provide them with an

explanation of the circumstances that caused the failure to happen on their mortgage loan

account and a breakdown of the redress and compensation payment including a detailed

financial summary.

The Provider wrote to the Complainants again on 13 August 2018 as follows:

“What are the circumstances that caused this failure to happen?

You switched the rate from a tracker to a fixed rate. The version of your terms and

conditions did not give you the option to go back on your tracker when this fixed

rate expired. We now accept that other information, provided to you by us, may

have given you an expectation that you could go back on onto your tracker when

the fixed rate expired.

…

What does this mean for you?

Now that we have completed the detailed review of your mortgage account we can

now show how we calculated the total redress and compensation payment. This is

from 30/10/2008, the date the account was first impacted”.

The Provider’s letter dated 13 August 2018 outlined the breakdown of the redress and

compensation payment as follows: