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Irish central bank identifies 13,600 more tracker mortgage-affected cases

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Irish central bank identifies 13,600 more tracker mortgage-affected cases

The Central Bank of Ireland said an additional 13,600 customers were added to the list of those overcharged for tracker mortgages, taking the total to 33,700.

The list includes customers who were denied tracker mortgages to which they were contractually entitled, as well as those who were given an incorrect rate.

Of the total cases, 26,600 were identified in the tracker mortgage examination while 7,100 cases were resolved outside it. A total of €297 million has been paid in compensation as of mid-December.

The central bank will "continue to review, challenge and verify the work undertaken by the lenders and complete our intrusive on-site inspection program," said Derville Rowland, director general for financial conduct.

Central Bank of Ireland Governor Philip Lane noted that "customers can accept the redress and compensation offered and still make an appeal."

KBC Group NV unit KBC Bank Ireland Plc made an additional provision of €61.5 million in the fourth quarter for overcharged accounts, having identified 2,557 additional affected accounts, for which it will pay out compensation during the first half of 2018.

Allied Irish Banks Plc said it identified an additional 900 customers who switched to fixed rate when tracker rates were withdrawn in 2008 and who, although they did not have a contractual right to revert to a tracker, may have been led by other material to believe that they did. The 900 newly identified customers are due to be compensated by the end of the second quarter of 2018, while a further estimated 130 expected to be identified by year-end will be compensated by the end of the first quarter of 2018.

The bank also identified a further 4,000 customers who were never on a tracker rate but had the contractual right to choose one at the end of their fixed-rate period and were denied this option as a result of the withdrawal of trackers. These customers will receive €1,000 each, plus €615 toward independent financial advice, and will have a year's option to avail of the current prevailing tracker rate on a go-forward basis.

Bank of Ireland said it has offered compensation to 7,670 customers, or 80% of the total affected, and expects to offer compensation to the remainder by early 2018. Some 1,947 have requested and received compensation to date, and a further 250 payments are being processed.

Royal Bank of Scotland Group Plc unit Ulster Bank Ltd. may have about 3,000 unidentified tracker mortgage rate-affected customers, in addition to the 3,500 it has already acknowledged, The Irish Times reported.

Further, Permanent TSB Group Holdings Plc unit Permanent TSB Plc's impacted customer count has risen by nine to 1,980 over the last two months, according to The Irish Times. All customers have been compensated, the lender said.