# What have we learnt today from the Central Bank?



## Brendan Burgess (19 Oct 2017)

I think it was useful session, despite all the repetition.

*Clarification of the Central Bank's powers*

The Central Bank does not have the power to direct the banks to redress people before 2013.
They don't have the powers to order compensation at any time.
They do have the power to get information from the banks.

*The Central Bank appears to be using its powers sensibly 
*
The banks told the the Central Bank which cohorts were in scope and which were not in scope and not impacted.
The Central Bank challenged this and, in most cases, the Central Bank managed to persuade the banks to change their mind.

*So far, two banks are insisting that some cohorts are not in scope and not impacted *

This seems perfectly reasonable to me. If the Central Bank says "In our opinion, those customers deserve their trackers back" the banks have the full right to explain their case and to refuse to put them back on trackers if they believe that they are not affected.  The Central Bank is not a court and it's not an ombudsman.

In these cases, the Central Bank will be directing the banks to write to all the customers in those cohorts to tell them of their decision and that they have the right to go to the Ombudsman or to the courts.  Again, perfectly reasonable. 

*They have reached decision time with these two banks*
They have been asked to come back with a final answer before the end of October. At that stage, the Central Bank can do no more. 

This is the correct procedure.  Personally, I would not trust the Central Bank's judgement on this. I would have more faith in the courts or the Ombudsman.

This process has to be fair to both sides - the borrower and the lender. Just because someone lost their tracker does not mean that they lost it incorrectly.


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## Brendan Burgess (19 Oct 2017)

Some banks had proposals for compensation, legal fees and the appeals process which the Central Bank deemed unacceptable and it appears that the Central Bank encouraged them to improve them. 

At least one bank refused to set up an Independent Appeals Panel and, I think that the Central Bank persuaded them to do so. 

If I were a lender, I would refuse to set up the Central Bank's model and would set up my own appeals procedure and let those who were unhappy with the outcome go to the FSO.


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## Brendan Burgess (19 Oct 2017)

The Central Bank is looking far beyond the mortgage contract and also considering 

ads
broker communication 

TV ads.
The Central Bank has confirmed that their investigation has been informed by many sources including complaints sent into them by borrowers.


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## Brendan Burgess (19 Oct 2017)

The issue of the "prevailing rate" is a live issue which the Central Bank is looking into.


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