FSO upholds 22 mortgage complaints against Danske; 11 against Ulster Bank

[Brendan Burgess]

In the 2014, Annual Report, the FSO breaks down the complaints by provider and by product type. Here are the figures for mortgages. I am just showing the figures for Substantiated complaints, as "Partly substantiated" can mean an award of €100 for rudeness. I have never seen anyone who received a partly substantiated complaint, feeling that their complaint was upheld.



I suspect that most of these cases are to do with trackers. This strongly suggests that there are systemic issues in the way in which Dankse and Ulster Bank deal with trackers.

My concern is that there must be hundreds of others who have the same problem but who have not made a complaint.

In the case of Ulster Bank, they seem to be now settling complaints before the Ombudsman decides.

 

[llgon]

I suspect that most of these cases are to do with trackers.

I would not be so sure of this in the case of Danske. A substantial number of complaints were upheld by the FSO in relation to Danske withdrawing their offset mortgage accounts. I can't be sure but I think that these may be the majority of the 21 cases.

There was a systemic issue with the way Danske dealt with this problem. They told all their customers they were under no obligation to continue these accounts and stuck with this line until they were forced by the FSO to restore them, albeit with an inferior product. A significant number of customers received compensation as a result.

 

[Brendan Burgess]

Hi llgon

Good point.

Did Danske not resolved these directly without a need for the Ombudsman to make a decision?

Brendan

 

[llgon]

While the complaints process was underway Danske offered a replacement offset mortgage account which was felt by most if not everyone to be an inferior product. I believe that people continued through the process and there were a significant number who were awarded compensation and refunds of interest through the FSO rulings. Incidentally many of these were not happy with the FSO decision and felt they should have either received higher compensation payments or restoration of the original product.