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Report: Ulster Bank to compensate clients for overcharging on certain mortgages

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Report: Ulster Bank to compensate clients for overcharging on certain mortgages

Ulster Bank Ltd. will pay around €100,000 in compensation to some of around 3,500 customers who were overcharged for tracker mortgages, The Irish Times reported Oct. 5.

In response to the Irish legislature finance committee's criticism of the functionality of Ulster Bank helplines for affected customers, Ulster Bank CEO Gerry Mallon said fewer than 40 people had been compensated for being overcharged.

Initially, the lender plans to disburse €50,000 to those who lost their homes due to high charges on tracker mortgages, Ulster Bank CFO Paul Stanley told the finance committee. Compensating all of the affected customers could drag "well into 2018," according to the lender.

Meanwhile, around 1,000 affected Ulster Bank customers who moved their mortgage to other banks or redeemed their loans will be compensated by the lender based on the difference between their current loan and the amount they would have paid if they had had variable-pay mortgage rates, Stanley said.

In 2016, Irish banks were criticized for charging significantly more on variable-rate mortgages than counterparts elsewhere in the eurozone.