By Direct Democracy Ireland
Direct Democracy Ireland is urging Borrowers affected Permanent TSB’s errors to seek expert advice before accepting any offers. the bank are due to offer up to €50,000 in compensation, an amount that was described by Anthony Connor as “offensive” and very inappropriate given that 22+ families lost their homes and hundreds more went through persecution as a result of negligence’s, but as of yet no one at the bank has yet been identified with any wrongdoing.
PTSB, which is 75pc State-owned, Must set aside at least €80m to cover the cost of potential fines and compensation. Some people were overcharged by up to €400 a month but Current PTSB chief executive Jeremy Masding states he was not at the bank when an initial overcharging error affecting 1,372 customers first occurred. Connor went on to say Mr.Masding should resign over the appalling decision to harass customers all the way to the Supreme Court – even after the Financial Ombudsman and the High Court found against the lender. Connor said we had become suspicious as a high volume of Springboard cases were been adjourned in the courts for no apparent reasons.
The court actions continued into this year, delaying settlement of the cases while customers continued to be charged the higher interest rates. A spokeswoman for the Department of Finance in a direct question refused to comment when asked if the department had confidence in Mr Masding’s position as PTSB CEO.
Mr Masding said that he stood by his track record in the company. The overcharging was a result of an error, he said.
“I can find nothing to suggest that individuals or a group of people took a conscious decision not to provide the information to our customers which should have been provided to them when they contacted the bank.” PTSB could end up paying out €76m in compensation to customers and could be hit with fines by the Central Bank of up to €10m.
It emerged that just under 1,400 mortgage accounts with PTSB and its subsidiary company, Springboard Mortgages Limited, are due to receive the compensation following the long-running mortgage disputes. The customers’ contracts entitled them to tracker mortgages but, as a result of action by the bank, they ended up forced to pay much higher standard variable rates for five years or more. This difference could be €5,000 to €7,000 a year. The higher repayments were identified as being a “key factor” in at least 22 cases of people losing their properties, although an appeal panel may find this to be the case with more. Some 39 other affected customers have also lost their properties, but the bank said it had not yet established whether its failures were a primary factor in this. PTSB said if its failure was a key factor in the customer losing the property, any outstanding amount on the mortgage would be written off.
Connor also stated “But this is just not good enough People lost their homes by possible deception before the courts thus should have their homes returned and compensation paid. The question still remains why they did not suspend all court proceedings until the matter was fully investigated” I suspect that the decision was made on a financial basis and not a moral basis disregarding the effects on families been more concerned with the effects on their balance sheet.