Tracker Mortgage Decision Reference 2023-0015

Case OutcomeRejected
Subject MatterTracker Mortgage
Date23 January 2023
Finantial SectorBanking
Conducts Complained OfFailure to offer appropriate compensation or redress CBI Examination
Decision Ref:
Product / Service:
Tracker Mortgage
Conduct(s) complained of:
Failure to offer appropriate compensation or
redress CBI Examination
This complaint relates to a mortgage loan account held by the Complainants with the
Provider which was secured on the Complainants’ private dwelling house (“PDH”). The
loan amount was for €280,000.00 and the term of the loan was 30 years. The interest rate
applicable was a tracker interest rate of ECB + 1.05%.
The mortgage loan account was redeemed by the Complainants on 26 March 2010 when
the Complainants opted to avail of the services of an alternative provider.
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 the Examination.
The Provider wrote to the Complainants on 11 January 2018 advising them of the error
that had occurred on their mortgage loan account. The Provider detailed “Why your
mortgage sub-account has been identified as impacted” as follows:
- 2 -
Through the review conducted under the Tracker Mortgage Examination, the use of
ambiguous and confusing terminology has been identified as causing a lack of
transparency in some of the documentation you received.
When you drew down on a tracker rate you received a letter of offer that used the
term “Home Loan” to describe your mortgage. When you moved to a fixed rate the
document you received, when read in conjunction with your letter of offer, was
unclear as to the default interest rate that was to apply on the expiry of your fixed
rate term.
These documents referred to the default interest rate as follows: “…the [Provider’s]
Home Loan Rate shall apply in accordance with General Condition 2 of the Offer of
Advance originally accepted by you…” It was not clear that the [Provider’s] Home
Loan Rate was [the Provider’s] Standard Variable Rate (SVR) and not your original
“Home Loan” rate, which was a tracker rate.
With respect to the effect of the failure on the mortgage loan account the Provider
outlined as follows:
As the terminology was unclear regarding what rate would apply to your mortgage
when your fixed rate came to an end, we have identified that your mortgage sub-
account was impacted from 01/01/2009 up to 26/03/2010. Impact occurred when
your fixed rate came to an end and you were not offered your tracker rate. During
this impacted period you did not receive the benefit of a tracker rate and you will
now receive redress and compensation.
The Provider made an offer of redress and compensation to the Complainants. The offer
of €7,494.34 made by the Provider to the Complainants comprised the following:
1. Total redress amount of €5,394.34 covering the following:
a. Redress amount of €4,990.05; and
b. Time Value of Money (“TVM”) of €404.29
2. Compensation of €1,500.00; and
3. Independent Professional Advice payment of €600.00

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