'Central Bank must investigate overcharging of mortgage customers'
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has called for the Central Bank to initiate a formal investigation after it came to light that AIB were overcharging on tracker mortgages they bought from Ulster Bank in 2022
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has called for the Central Bank to initiate a formal investigation after it came to light that AIB were overcharging on tracker mortgages they bought from Ulster Bank in 2022.
The Donegal TD said it is extremely concerning, and another blow to public trust in banks.
Teachta Doherty said: “Reports that AIB has been overcharging 55,000 customers on their tracker mortgages by not passing on the benefit of ECB rate cuts in a timely manner is extremely concerning.
“We know that banks are making eye-watering profits and paying almost no tax. A lot of that is from squeezing homeowners and short-changing savers. When AIB bought these mortgages from Ulster Bank, the minister for Finance, Paschal Donohue, promised he would ensure homeowners would be protected, and the terms of their contract would travel with them. That has clearly not happened here.
“This will be the second time AIB has had to issue payments to compensate customers since it bought €5.4bn in mortgages from Ulster Bank in 2022. And only a short number of years after it was issued a record fine of almost €100m for its role in the tracker mortgage scandal.
“AIB is a repeat offender, and we need to see a zero-tolerance approach from the central bank. The central bank needs to be on the side of the customer, not the banks. On top of that, it is very disappointing that AIB is outsourcing the work of managing these mortgages they bought to vulture fund Mars Capital.
“If AIB wants to show they respect their customers and that those who were transferred from Ulster Bank are treated equally, they should take direct management of these mortgages instead of outsourcing the work to a vulture fund and credit-servicing firm.
“We need to see action from government and the Central Bank. Bank practices will not improve until the regulation is tightened, and banks are held to account.”