All customers affected by tracker mortgage scandal should be compensated by end of June

The Central Bank Governor has highlighted the "devastating impact that lenders’ failures have had on customers"

All customers affected by tracker mortgage scandal should be compensated by end of June

Philip Lane. Photo: Oireachtas Television

All those hit by the tracker mortgage scandal should have their money back and compensation paid by the end of June.

The Governor of the Central Bank, Philip Lane, says customers can cash their compensation cheque and still appeal it if they do not think it's good enough.

Mr Lane updated the Oireachtas Finance Committee on his organisation's review of the tracker mortgage controversy.

The financial regulator has been investigating after tens of thousands of customers of several Irish lenders were overcharged or wrongly denied a tracker rate.

Figures released last month revealed that at least 33,700 customers have been affected by the scandal.

Today, Mr Lane told deputies and senators: "The main lenders have now made combined provisions of circa €900 million in respect of the Examination, broken down as approximately €600m for redress and compensation and €300m for costs. One lender recently disclosed that it had up to 500 people working on its redress scheme.

"These institutions also must repair damaged reputations, not only as a result of the original mis-handling of tracker mortgages but also due to the partial and delayed engagement of some lenders with the requirements of this Examination."

He added: "I acknowledge that this work has taken time to complete and I am conscious of the devastating impact that lenders’ failures have had on customers, up to and including the loss of their homes and investment properties.

"I acknowledge also that no amount of money will ever fully compensate a person or family for the trauma involved in losing their home."

While he said that they are not yet ruling out that the number of those affected could go up, he also confirmed that all initial payments should be paid by the middle of the year.