# AIB statement on tracker redress



## LadyHB (25 Oct 2017)

AIB press release in pdf


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## Brendan Burgess (25 Oct 2017)

25

 October 2017
Statement from AIB Group

Following a meeting with the Minister for Finance, Paschal Donohoe, to discuss the tracker
mortgage examination programme and how best to ensure its timely conclusion, AIB is
issuing the following statement:

In order to identify impacted customers, analysis was undertaken on c. 650,000 accounts
with a manual review of c.50,000  accounts. The review did not rely just on the legal
interpretation of customers’ contracts but, working at all times within the Central Bank
framework, identified issues relating to contractual matters, inadequate levels of
transparency and poor quality customer information. This resulted in the identification of
over 30 different impacted customer groups.

AIB is now well advanced and has redressed and compensated the majority of impacted
customers who, as a result of the bank’s actions, were identified as (1) no longer on a
tracker and (2) were incorrectly on a higher tracker margin for a period of time.

(1) Customers no longer on a tracker
 At the end of September 2017 AIB had identified 3,416 customers who were not on the
tracker mortgage rate to which they were entitled. Ninety-one percent of these have
had their trackers restored (to an average tracker margin of 1.2%) and have also been
redressed and compensated. The remaining cases will be completed by the end of the
year.  
 We estimate a further 170 cases will be identified by the end of the year and these have
an estimated completion date of end Q1 2018.  
 One of our priorities was to deal urgently with the serious issue of family homes that
were lost as a result of the issue. To date, twelve customers have been identified and
these customers were redressed and paid compensation by Q1 2017.  






(2) Customers on a higher tracker margin
 During the review we also established that some customers, who remained on a tracker
mortgage, were incorrectly charged a higher tracker margin.  
 The majority of these were impacted for a short period of time and by less than €500.  
 Two thirds of these customers will be redressed and compensated by the end of this
year, with the remainder to be completed by the end of Q1 2018. 





AIB approach to tracker examination:
AIB commenced its investigation in August 2015, and the bank in that year made a provision
of €190m to cover redress and related costs, €133m of which has been utilised.
Approximately 500 people have been deployed to work on the review.  From December
2015 the review has been conducted in accordance with the Central Bank framework and
independently assured by KPMG. The programme includes putting customers back on the
correct rate, refunding, compensating, and access to an independent appeals process.

AIB again sincerely apologises to customers and reiterates this should never have happened.
AIB’s CEO Bernard Byrne confirmed to the Minister during their discussions of the
commitment of management and Board to bring the programme to a conclusion as quickly
as possible in the interests of impacted customers. Our priority is to continue the progress
we have already made, with all the necessary resources at our disposal, in compliance with
the Central Bank’s framework.

While the programme and examination continues, the significant progress outlined above
positions the bank to achieve a conclusion of the programme, subject to the final agreement
and approval of the Central Bank.

AIB has endeavoured to implement the most thorough and effective response to an issue
that should not have arisen.

ENDS


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## Brendan Burgess (25 Oct 2017)

Again, they  have not commented on the cases of those whom they have deemed not impacted. 

The numbers are interesting, but the much bigger issue is the people who think that they should get a tracker, but AIB says that they should not.

Brendan


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## Aidan.obrien (25 Oct 2017)

Does this include EBS customers who lost trackers? Where are they in all of this!!??


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