Tracker Mortgage Decision Reference 2022-0287

Case OutcomeRejected
Reference2022-0287
Date25 August 2022
Year2022
Subject MatterTracker Mortgage
Finantial SectorBanking
Conducts Complained OfFailure to offer appropriate compensation or redress CBI Examination
Decision Ref:
2022-0287
Sector:
Banking
Product / Service:
Tracker Mortgage
Conduct(s) complained of:
Failure to offer appropriate compensation or
redress CBI Examination
Outcome:
Rejected
LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN
Background
This complaint relates to the Complainants’ mortgage loan held with the Provider. The
mortgage loan the subject of this complaint was secured on the Complainants’ private
dwelling house.
The loan amount was €193,200.00 and the term of the loan was 30 years. Mortgage loan
sub-account ending 8624(01) drew down on 28 March 2006 on a tracker interest rate of
ECB base rate of 2.50% plus a margin of 1.05%.
The Complainants’ mortgage loan account 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 30 May 2018 for the purposes of advising
them of the error that had occurred. The Provider detailed “Why your mortgage sub-
account has been identified as impacted” as follows:
- 2 -
/Cont’d…
“Through the review conducted under the Tracker Mortgage Examination, we have
identified that you are a customer who inadvertently lost your tracker rate due to
an internal processing failure by the bank.
We have determined that the loss of your tracker rate occurred as a result of an
internal processing failure and we have identified that your mortgage sub-account
was impacted from 15/07/2015 up to 22/12/2016. Impact occurred when the
internal processing failure resulted in you losing your tracker.”
The Provider offered the Complainants the sum of €2,931.31 as redress and compensation
for the error that occurred, made up of the following:
1. Total redress amount of €502.10 covering the following
a. Redress amount of €497.64
b. Time Value of Money of €4.46;
2. Compensation of €1,500.00;
3. Fees and Charges payment of €329.21;
4. Independent Professional Advice payment of €600.00
The Provider adjusted the Complainants’ sub-account by €6,545.24 to rectify the fact that
they were on a higher interest rate on 18 May 2018.
In July 2018, the Complainants’ appealed to the Provider’s Independent Appeals Panel.
The Independent Appeals Panel decided on 12 September 2018 that the appeal was not
upheld, as follows:
“…having regard to the Tracker Mortgage Examination framework the Panel was
satisfied that the Bank had put [the Complainants] back in the position they would
have been in had the Bank’s error not occurred and therefore determined that the
severity of detriment did not warrant additional compensation which had not been
accounted for in the Bank’s offer of Redress and Compensation.”
The Complainants rejected the Independent Appeals Panel’s decision on 10 October 2018.
As the Complainants completed the Provider’s internal appeals process, this Office was in
a position to progress the investigation and adjudication of the complaint.
The conduct complained of is that the Provider has failed to offer adequate redress and
compensation to the Complainants for the failures identified on their mortgage loan
account.

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